Research

T+1: Settlement failures and cascading risks

This report delves into the post-trade financial cycle, highlighting the potential risks associated with the US market transitioning to shorter settlement cycles.

Copper

22.05.2024

Settlement failures are already in the trillions of dollars annually at T+2. And the US is poised to move to T+1 in a week increasing the chances of cascading risk.


Ready for T+1?

Part one of our in-depth report series, delves into the post-trade financial cycle, highlighting the potential risks associated with the US market transitioning to shorter settlement cycles.

Whilst T+1 settlement brings increased efficiency, concerns revolving around counterparty and credit risks, capital efficiency, liquidity, and an uptick in settlement failures remain.

Find out more about the substantial risks related to collateral movement within derivatives market and the importance of efficient and reliable post-trade processes in the first part of our series on T+1.

Download part one of the in-depth report titled 'T+1: Settlement failures and cascading risks.' below.

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