What a T+1 settlement cycle in US means for financial institutions, investors

BY MID-2024, the United States will halve the time it takes to settle securities transactions from two business days to one.

This move to a T+1 settlement cycle in the US will have a knock-on effect on other financial markets, although market watchers told The Business Times that the impact on financial institutions would be mostly administrative.

Given the larger time zone difference between the US and Asian markets, back offices in Asia will feel greater pressure in their work processes than those in other countries with the reduced settlement time, they said.