Market participants are not prepared for shorter settlement cycles, despite being strongly in favour of a move to T+2, according to a study from Omgeo.
I have to agree that FS firms are really slow to move towards T+2 with buyside firms and retail stockbrokers almost totally unaware or with their heads in their hands or over their eyes. Matching is key and this has to be trade date and no later.At an equal
point of importance is standard and accurate settlement instructions. Sadly the industry as a whole are not great at either despite OMGEO supplying very good solutions there is still far too much that goes through outside of any matching or SSI standards.
SWIFT offers good alternatives and i suspect that more and more vendors will enter this space. Question is will it be before T+2 or afterwards as the industry moves into another settlment crisis?
CompetitiveNew York City, NY (USA)
© Finextra Research 2014