Wall Street’s T+1 Switch Is Proving Tougher Than Anticipated

The transition to a T+1 settlement cycle has been a bumpy road for Wall Street.

The new system, which was supposed to go live in September 2023, has been delayed until at least May 2024.

The delay is due to a number of factors, including the need for more testing and the complexity of the new system.

The T+1 settlement cycle is a major change for Wall Street. Under the current system, trades are settled two business days after they are executed. The new system will reduce that time to one business day.

The change is intended to reduce risk and improve efficiency in the financial markets. However, it has also been met with some resistance from the industry.

Some firms are concerned about the cost and complexity of implementing the new system.

Others worry that it could lead to increased volatility in the markets.

Despite the challenges, the T+1 settlement cycle is expected to eventually be implemented on Wall Street.

The change is seen as a necessary step to modernize the financial markets and reduce risk.

Here are some of the key challenges that Wall Street is facing in implementing the T+1 settlement cycle:

• The need for more testing
• The complexity of the new system
• The cost of implementation
• The potential for increased volatility in the markets

The T+1 settlement cycle is a major change for Wall Street. It is likely to have a significant impact on the way that trades are executed and settled.

The industry is still working through the challenges of implementing the new system, but the T+1 settlement cycle is expected to eventually be implemented.

Conclusion

The T+1 settlement cycle is a major change for Wall Street. It is likely to have a significant impact on the way that trades are executed and settled.

The industry is still working through the challenges of implementing the new system, but the T+1 settlement cycle is expected to eventually be implemented.