Looking for clarity on the regulatory changes that need to be made in order to enforce T+1? In an ideal world, by the time we all come together in September, regulators in Europe, the UK and Switzerland will have provided some certainty. If not, get yourself along to the ‘What’s next on T+1’ session with Sachin Mohindra, executive director Goldman Sachs where you can find out what firms on this side of the Atlantic can learn from the experiences of their US counterparts.
“Every time there is a regional migration to T+1 there are lessons to be learned,” says Mohindra. “The industry will require ongoing clarity on the changes that need to be made as well as access to industry reports that enable market participants to figure out what they need to do. Market infrastructures have to be able to provide their members and clients with the necessary specifications and documents.”
In other words, it is time to start turning analysis and recommendations into hard requirements for the technical build that will be required next year.
Mohindra says budgets need to be set for development in 2026 and that the amount of work involved in the transition to T+1 should not be underestimated.
Hand-on
“There will be a lot of hands-on technical work needed in 2026, because 2027 is going to be all about testing and finalising systems to go live. A lot of the preparatory activity for T+1 will help with general post-trade efficiency, whether that is resolving exceptions in the system, identifying the root cause of fails and mismatches or moving more towards utilising a golden source of a trade and reference data. This is all work that firms can start doing now to make their systems fitter and healthier for the transition when it does actually take place.”
He also recommends firms to start looking beyond T+1 given the conversations taking place about increasing retail flow to help drive more liquidity in markets. Part of that is around extending trading hours, which naturally bridges the gap between T+1 and T+0 settlement.
Have you signed up yet to be in Stockholm for PostTrade 360° 2025 on 3–4 September? It’s free for securities operations pros, both trading and investor sides! (Vendor firm representatives need a sponsorship agreement.) The powerful event website lets you register, see all other delegates, schedule sessions and meetings, and message. Find all related articles, including loads of teaser interviews, here.
