Curated News
By: NewsRamp Editorial Staff
May 15, 2024
FX Settlement and T+1: Are You Ready?
Discuss on RedditTLDR
- The shift to T+1 in securities settlement will create opportunities for faster trading and reduced market risk.
- The move from T+2 to T+1 will compress settlement cycles, prompting reassessment of currency trading processes worldwide.
- The shift to T+1 will make global markets more efficient and reduce settlement risks, ultimately improving the overall trading experience.
- The move to T+1 in securities settlement will create a significant impact on global FX markets, prompting a need for urgent adjustments.
Impact - Why it Matters
The shift from T+2 to T+1 in securities settlement will have a significant impact on the global FX markets, prompting a reassessment of the entire currency trading process for investors located outside the U.S. This shift creates a smaller window for settlement, posing challenges for Asia-based investors, and the industry is scrambling to catch up.
Summary
In May 2024, securities settlement in the United States, Canada and Mexico will move from T+2 to T+1, impacting the global FX markets. Jason Vitale, Global Head of Foreign Exchange at BNY Mellon, examines the implications and readiness of the market. The move will prompt a reassessment of the entire currency trading process for investors located outside the U.S., creating a smaller window for settlement. The shift to T+1 also poses challenges for Asia-based investors, and the industry is scrambling to catch up.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, FX Settlement and T+1: Are You Ready?
