T+1 Compliance and Settlement Process Overview

This document is a guide that outlines the implications of the SEC's amendments to the Exchange Act Rule 15c6-1, which shortens the trade settlement cycle for most US securities transactions to T+1. It discusses the impact on various stakeholders, including investors and custodians in Europe and Asia Pacific, and highlights the global trend towards accelerated settlement. The guide emphasizes the necessity for firms to enhance their settlement processes and infrastructure to meet the T+1 compliance deadline. It details the importance of automation and advanced technologies, such as AI and machine learning, in adapting to these changes. The document also addresses the challenges firms may face, particularly those relying on legacy systems, and suggests that partnering with technology specialists can facilitate compliance. Additionally, it covers the need for efficient reconciliations, cash and liquidity management, and collateral management practices to navigate the demands of T+1 settlement effectively.