The imminent shift in settlement cycle from T+2 to T+1 settlement, mandated by the US Securities and Exchange Commission for May 2024, marks a significant change in securities markets. This transition aims to boost efficiency, diminish counterparty risk and align with technological advancements. In preparation, financial firms – particularly buy-side entities – are strategically adapting technology, operations and controls. Automation and real-time transparency are pivotal for a seamless shift, addressing challenges in trade matching, settlements, securities lending and funding.
This white paper, created by Broadridge, outlines its NYFIX Matching solution, which offers a tailored road map, leveraging robotic process automation and artificial intelligence, ensuring a smooth transition. As the industry braces for T+1, this move also positions organisations to future-proof systems, laying the groundwork for potential further reductions in settlement cycles, including T+0 settlement.