Wall Street dealers currently focus on next-day settlement (T+1) as a means to reduce headcount. But electronic trading and centralised data will drive greater benefits by lowering dealers' operating risk and financing costs, says Forrester Research.
- Three-day settlement creates unnecessary risk.
- Individual dealers will spend $125 million to achieve T+1.
- Dealers can save more than $2 million per day in operating risk and financing costs.
- Electronic trading and centralised data determine success.
- Require traders to get off the phone.
- Centralize settlement instructions.
What it means
- 25%of dealers will go out of business.
- Large dealers’ commission revenues will decline.
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