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Ready or not

Monday sees the introduction of T+2 settlement and with it a new set of challenges for operations departments across our industry. Whilst we are not expecting a meltdown, the cost in time and effort to keep the wheels on will be a burden for both buy-sides and sell-sides for some time to come. T+2 is being introduced to reduce settlement risk across the industry. Some asset managers will ask for T+3 settlement with their brokers who, together with their custodians, will carry an increased number of overnight positions for their clients, with the corresponding increase in capital commitment and risk.

So is T+2 solving a problem, or moving it? We wait with baited breath and tin hat at the ready.

 

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