Technology Opportunities for T+0 Settlement Models

This technical report discusses the evolving landscape of settlement models as the industry moves towards T+0 settlement. It outlines the necessity for significant changes in approach and technology utilization, including cloud computing, APIs, AI, and machine learning. The report identifies three core models under consideration: end-of-day netting, atomic settlement, and real-time gross settlement (RTGS), each with distinct benefits and challenges. Key functionalities required for successful implementation include maximizing settlement system availability, enhancing pre-trade validations, and developing automated post-trade exception resolution tools. The report emphasizes the importance of accurate data validation and the role of technology in facilitating real-time data exchanges among trading participants. It also highlights the need for a shift in operational models to accommodate same-day settlements and discusses the implications of inventory management and market principles for resolving discrepancies. The report concludes with a call for firms to assess their technology strategies to adapt to these changes effectively.