Banking and capital markets organizations are in for a major change when it comes to securities trading—a change that will require new levels of agility and speed. That’s because currently, they have two business days in which to settle North American security trades. These settlements are commonly referred to as T+2, meaning the date of the trade (“T”), plus two days in which ownership needs to be transferred or settled.
But settlement cycles will soon be cut in half. The Securities and Exchange Commission (SEC) confirmed in February that beginning May 28, 2024, security settlements will have to occur within one business day. That means T+1 compliance is on—and it looms as a gamechanger for the capital markets industry.
To learn more about leaders’ views on the initiative, Cognizant conducted a series of in-depth interviews with executives at financial services firms on T+1’s challenges and opportunities.
Here’s what they told us, and what you need to know: