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It is not hard to find short-term worries over global markets’ state of readiness for the US’s transition to one-day settlement in late May. But even if the UK, Europe and those Asian markets still using two-day settlement can adapt to the shift in the longer term, they will also face intense pressure to lessen their dislocation from the US cycle by copying its move. Many also fear the ultimate end-game of same-day or even instant settlement.
The elephant in the room is whether the move to a shorter settlement cycle by the world’s most important market will stop at T+1, or whether it is inevitable that pressure will build to go shorter still.
Shorter
