More haste, less speed? The rush to T+1 could cause disruption for years to come

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Same-day settlement: to infinity and beyond

First it was the end of Libor, back in 2021 and again in 2023. Now, in 2024, many markets have a new and potentially even more disruptive challenge to negotiate. On May 28, the US, Canada and Mexico will move from a two-day settlement period for securities transactions to just one day after trade date, what the industry calls T+1.

The change was formalised by the adoption of a rule by the US Securities and Exchanges Commission back in February 2023, a move that started the clock on one of the most far-reaching changes to have been attempted in global markets.