T+1 Settlement Transition in Global Markets

This document is a technical report discussing the transition to T+1 settlement cycles in global financial markets, particularly focusing on the experiences and challenges faced by North America and Europe. It outlines the significant market changes anticipated as various jurisdictions, including Europe, the UK, and parts of Asia-Pacific and Africa, prepare to adopt shorter settlement cycles by 2030. The report emphasizes the need for financial institutions to adapt their operations, with a notable 76% of respondents currently engaged in T+1 projects. The document details the transformative impact of T+1 on the entire trading lifecycle, from execution to settlement, and highlights the complexities involved in the European transition due to diverse regulatory regimes and market infrastructures. It also discusses the importance of data quality, standardization, and automation in mitigating settlement fails, as well as the critical role of inventory management and funding decisions in a T+1 environment. The report concludes with insights into the necessary preparations and recommendations for a successful transition by the October 2027 deadline.