Securities lending faces up to T+1 settlement challenge

The move to T+1 settlement in major markets creates a number of challenges, as Euromoney has previously discussed. Indeed, for the past three years, cash, funding and liquidity management have been cited as the greatest obstacles to achieving a shortened settlement cycle, according to the third edition of the Securities Services Evolution whitepaper series published by Citi in August.

Almost every organization surveyed by the US firm identified cash clearing as a key area of change needed to facilitate T+1, with 98% of respondents citing it as a top three priority.