The Currency analytics
By dan saada
The Financial Conduct Authority welcomed the Accelerated Settlement Taskforce's latest report today.
Bell thinks faster settlement will cut risks and free up capital for quicker reinvestment. The shift puts the UK in line with other major markets that have already made the jump.
The AST report outlines what got done last year and what's left to tackle. Bell said he's "delighted to see the great progress made last year" but the focus stays on completing…
Several major banks, including Barclays and HSBC, reported significant progress in their system upgrades.
The transition represents a big step for capital markets. Operational efficiencies should improve and counterparty risks should drop.
The U.S. markets successfully moved to T+1 in 2024, giving the UK a benchmark to follow. The U.S.
The Accelerated Settlement Taskforce, led by industry veteran Laura Jenkins, has been key in guiding the process.
A meeting is scheduled for February 15 between the FCA and major financial institutions. They'll review progress and discuss any remaining obstacles that could derail the timeline.
Market entities must work toward meeting these expectations as the year moves forward. There's mounting pressure to ensure technological readiness across the board.
The T+1 settlement cycle aims to reduce the time between trade execution and settlement to just one day.
Pending tasks include more system upgrades and rigorous testing phases. The process involves significant collaboration across different stakeholders who don't always see eye to…
Industry experts are keenly watching how firms will adapt to the new framework. The shift requires major technological upgrades and operational adjustments that cost serious money.
The FCA didn't provide additional comments beyond Bell's statements. The industry awaits more disclosures on upcoming phases and specific implementation guidelines.
Further testing and refinement of processes represent the immediate next steps. Ensuring a seamless shift to T+1 is the priority as December approaches fast.
The European Securities and Markets Authority has been monitoring the UK's T+1 preparations closely, particularly given the interconnected nature of cross-border trading.