On 28 May 2024, the US equities markets transitioned to a T+1 settlement cycle after more than a year of intense preparation among both domestic and international firms.
The headline aim of the move to T+1 settlement was the reduction of counterparty risk exposure and unlocking tied-up liquidity in the US settlement process. US equities represent over 40% of global market value, so the impact of this shift is already being felt through other regions.
In this paper, analysts in Thomas Murray’s Financial Market Infrastructure team highlight how the move to T+1 is affecting North America, Europe, Asia Pacific, Africa and the Middle East, and the LATAM regions.
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