Smooth Transition to T+1 Despite Teething Problems

Smooth Transition to T+1 Despite Teething Problems

June 5, 2024, Banking Risk and Regulation

Charlotte May’s commentary was included in a Banking Risk and Regulation article exploring the United States and Canada’s shift from a two-day to a one-day settlement cycle for securities trading. Charlotte discusses how there has not been a “dramatic shift” since the changeover.

Charlotte further points out “there does not seem to be much angst over the change at this stage, and this is not much of a surprise as the market has had time to prepare and digest the change.” As more document-heavy transactions, such as convertible debt and secondary offerings, fall under T+1 rules in the U.S., Charlotte says “it will be interesting” to observe how firms co-ordinate the preparation.