T+2: a less unsettling world
December 2014

For more than two centuries, change was an alien concept for securities settlement models. Despite teady technological advances, the period for settling securities trades remained stubbornly long. While the past few decades have seen the settlement cycle shorten significantly, it seems incongruous that the front office can execute a trade within a fraction of a second, yet it typically takes several days before cash and securities are exchanged and the transaction is concluded.

After lagging far behind trade execution for so long, settlement times are catching up. But around the world they still vary widely, even after a recent wave of changes. In this article, we examine the rocky path towards a T+2 cycle and the benefits that this could have.

Read this article in:
Executive briefing: December 2014




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For more than two centuries, change was an alien concept for securities settlement models. Despite teady technological advances, the period for settling securities trades remained stubbornly long. While the past few decades have seen the settlement cycle shorten significantly, it seems incongruous that the front office can execute a trade within a fraction of a second, yet it typically takes several days before cash and securities are exchanged and the transaction is concluded.

After lagging far behind trade execution for so long, settlement times are catching up. But around the world they still vary widely, even after a recent wave of changes. In this article, we examine the rocky path towards a T+2 cycle and the benefits that this could have.

Read this article in:
Executive briefing: December 2014