T+1 Transaction Timeline From 1976 to May 2024 and beyond.
As the deadline for the SEC’s T+1 initiative approaches on May 28th, 2024, IT departments are facing the challenge of making sure their systems are up to date and ready for the demands of T+1 transactions. The T+1 initiative is a move to shorten the trade settlement cycle from the current two-day, T+2, to a one-day, T+1. This is a major change for the industry, requiring that systems support the completion and settlement of transactions within 24 hours, and also scale to the increased demand enabled by the faster settlement time. And in this case - there really isn’t a Plan B or hope for a postponement. The consensus of the industry is that just like with the year 2000, a back-out of T+1 functionality is not an option. Any problems will need to be addressed by the applicable firm(s) prior to the deadline, or be subject to fines and associated damages. The industry is moving forward with T+1 settlement on May 28th, 2024 - whether you are ready or not.
Read more...