News & Alerts

T+1 Settlement Changes – What Does This Mean For You?

In 2024, North American capital markets will transform their settlement cycle, replacing the standard T+2 with the swifter T+1 process, settling trades just one day after execution. This shift aims to reduce counterparty risk and enhance overall market efficiency.

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.

Contact us

More like this

The FundBank Annual Cocktail Event

FundBank was pleased to welcome almost 100 of its friends and colleagues to Morgan’s Harbour for its annual cocktail event…
Read more

Fund Banking 2.0 - Post Banking Crisis Success

On 7th November, 2023, our FundBank team led by Lori Webb-Griffith and Laura Accurso were delighted to host a Women’s…
Read more

FundBank makes donation to Cayman Islands Meals on Wheels

FundBank was delighted to have recently made a donation to the Cayman Islands Meals on Wheels charity. As part of…
Read more