The U.S. Securities and Exchange Commission mandates Tuesday, May 28, 2024, as the transition date for U.S. market participants. In Canada, the shift to T+1 starts on Monday, May 27, 2024, aligning North America in this synchronized transformation.
The move to T+1 is a global effort, not limited to brokers and custodians. Active buy-side engagement across trading, including U.S. securities and currency markets, is crucial. Failing to engage may result in operational inefficiencies, higher costs, increased trade failures, interest claims, buy-ins, and suboptimal client engagement. It is imperative for all stakeholders to proactively prepare and participate in this transition for the North American capital markets’ success.
FundBank’s Response to These Changes
At FundBank, we welcome these upcoming changes. This will be a positive change for our clients, resulting in quicker settlement time to gain access to their cash and reduced counterparty risk, with less time between the trade and the settlement date. Our skilled and experienced tech-enabled team is already prepared for these changes, having in place the necessary process to be able to meet this faster settlement cycle.
Elaine Whitefield, Vice President, Custody commented, “At FundBank, our clients’ response to the shorter settlement future changes has been very positive, they are able to gain access to their funds in a more expeditious way and have the benefit of putting their assets to work sooner in another investment opportunity or alternatively, in an interest-bearing account with us. In addition to benefitting our clients, there will be increased efficiencies across the marketplace with less lag time.”
For any T+1 settlement change queries, please reach out to the FundBank Custody & Trading team or, to find out more about FundBank’s full suite of banking solutions, tailored solely for the asset management industry, please reach out to your usual FundBank representative, or contact us below.