NAVIGATING THE T+1 SETTLEMENT
TRANSITION
The latest resources and insights to help support you with T+1
settlement and beyond.
T+1 settlement is now live in markets across the U.S., Canada, Mexico, Jamaica and Argentina. Dual-listed foreign securities in Peru also now follow T+1 settlement. We’ve closely monitored all aspects of the transition, including the settlement of T+1 transactions.
We recognize that T+1’s compressed settlement cycle may pose challenges for investors related to communications, compliance, liquidity management, operations and technology – particularly for managers of international portfolios.
If you have any questions about T+1 settlement or how BNY’s solution can help you smooth T+1 implications, please speak to your BNY representative.
Our T+1 Solution
BNY has the breadth of services and depth of experience to support you through your transition to the T+1 settlement cycle and beyond.
Whether you need solutions for trading, custody, settlement or liquidity, our interconnected platform powers your business and presents opportunities for you to remain flexible and adaptive when responding to changing market conditions.
Our T+1 Solution
BNY has the breadth of services and depth of experience to support you through your transition to the T+1 settlement cycle and beyond.
Whether you need solutions for trading, custody, settlement or liquidity, our interconnected platform powers your business and presents opportunities for you to remain flexible and adaptive when responding to changing market conditions.
Our T+1 Solution
BNY has the breadth of services and depth of experience to support you through your transition to the T+1 settlement cycle and beyond.
Whether you need solutions for trading, custody, settlement or liquidity, our interconnected platform powers your business and presents opportunities for you to remain flexible and adaptive when responding to changing market conditions.
SOLUTIONS THROUGHOUT THE TRADE LIFECYCLE
The T+1 settlement transition may have increased operating costs due to various factors. BNY offers solutions that can help.
- Bank sponsored collective investment trusts (CITs) may provide lower-cost fund vehicles while still meeting investment strategy and performance objectives.
- Buy-side trading solutions can supplement existing trading capabilities or offer full outsourcing of all the execution responsibilities of an internal trading desk.
- Securities finance capabilities delivering the tools needed to source liquidity, borrow and lend securities. Our scale and expertise helps minimize recalls, thereby reducing the risk of fails.
- FX solutions offer a comprehensive suite of FX capabilities for all your trading, hedging and payment needs, including same-day FX execution.
- BNY is extending FX cut-offs in several currencies to help alleviate T+1 challenges.
- Data & Analytics solutions provide predictive analytics integrated into client’s operating model to help better address operations and oversight.
- Securities lending solutions provide real-time tools to assist in managing liquidity and margin requirements. Our program’s scale and automation minimizes the need to recall.
- Detailed analytics on performance enable proactive outreach and more timely issue resolution.
RESOURCES
Fact sheet
BNY has the breadth of services and depth of experience to help you stay flexible and adaptive in the face of T+1. Whether you need help with trading, custody, settlement or liquidity, BNY can support you.
LATEST INSIGHTS
As markets adjust to the reality of one-day securities settlement in North America, what FX and funding complications could laggards face? And what systemic risks are market participants worried about if settlement fails rise?
In May 2024, securities settlement in the United States, Canada and Mexico will move from two days to one (T+2 to T+1). While the move will, in theory, reduce counterparty and market risk and lower margin requirements, it will have a significant knock-on effect on the global foreign exchange markets (FX).
As the industry moves to a new T+1 settlement cycle, many fund managers may continue to be unaware of the knock-on effects on FX transactions.
T+1 TRANSITION RESOURCES
The transition to T+1 brings new requirements for affirming trades. In April 2024, our experts discussed these changes alongside representatives of the Depository Trust & Clearing Corporation (DTCC).
What’s the industry perspective on T+1? In March 2024, we sat down with Goldman Sachs Asset Management to compare notes.
T+1 poses specific challenges for financial institutions in the Asia Pacific region. In March 2024, we gathered speakers from across our foreign exchange, custody and securities lending businesses to discuss these challenges.
What does T+1 mean for FX trading and securities lending? Our January 2024 webcast featured experts from BNY and the Value Exchange sharing industry perspectives and discussing operational challenges and potential fixes.
In October 2023, BNY came together with the DTCC to look ahead at the impacts of T+1 to clients across our custody and foreign exchange businesses.
BNY experts take a deeper dive, highlighting observations and insights throughout the various phases of this global transition.
Learn more about T+1 and the key changes that are happening in the markets, including answers to many common questions our clients and counterparties are asking.