T+1 Accelerated trade settlement

On 15 February 2023, the US Securities and Exchange Commission (SEC) adopted rule changes to shorten the standard settlement cycle for most broker-dealer transactions in securities from two days to one business day after the trade date (i.e. T+2 to T+1).

With India having already migrated in January 2023, Mexico and Canada are set to migrate their security settlement process on 27 May 2024, in line with the US.

• Orders submitted with a trade date on or before 28 May 2024 will settle based on the T+2
• Orders submitted with a trade date after 28 May 2024 will settle based on the T+1.

The transition to a T+1 settlement cycle requires EU market players to make significant operational adjustments, including updates to systems and processes to accommodate the shorter settlement timeframe.

In our latest publication, you can explore:

• The assets included in the transition to the T+1 settlement
• The primary reasons driving the US shift to the shorter settlement cycle
• The impact of T+1 and the main challenges associated with this transition
• How KPMG assists in navigating and implementing the accelerated settlement process.

Contact us to turn insights into strategies.