T+1 is a Year away and a Quarter of Firms Still have no Plan
As the T+1 settlement requirement approaches, Aqua Global has reported that 23% of financial institutions currently lack a plan for compliance. CEO Cian Fernando has cautioned that the remaining firms may face rushed and expensive overhauls as the deadline nears, which could lead to operational disruptions.
The T+1 initiative aims to shorten the settlement cycle for securities transactions, pushing firms to adapt their processes and systems. This timeline presents a significant challenge for those unprepared, potentially impacting their competitiveness and profitability as market dynamics shift in accordance with enhanced regulatory expectations.
Key takeaways
- ▸23% of financial institutions lack a plan for T+1 compliance.
- ▸Rushed implementations may lead to costly overhauls for firms.
- ▸The T+1 initiative is designed to shorten the settlement cycle for securities transactions.
- ▸Unprepared firms could face significant operational disruptions as the deadline approaches.
Why this matters
The impending T+1 deadline presents a critical juncture for financial institutions, particularly those unprepared to meet the upcoming regulatory changes. Firms that fail to adapt risk incurring substantial costs and operational setbacks, potentially undermining their competitive edge in a market increasingly driven by efficiency and compliance.
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