“Industry associations representing stakeholders who will be impacted” are in scope, as the Association for Financial Markets in Europe calls for interest to help the industry sing in unison on the shortening of the trade settlement cycle.
Overall, the US has taken a lead on the matter, with its Securities and Exchange Commission recently deciding to have the T+1 cycle enter into effect on 28 May 2024. (India is among those who have already introduced a T+1 cycle in some parts, so the phenomenon as such is not all new to the world.) Now, AFME wants to address, firstly, whether Europe should follow, when all costs and benefits are on the balance, and secondly, when and how if so.
“AFME is convening this industry task force to ensure all aspects of T+1 adoption in Europe are considered, including direct economic costs and savings to the industry, as well as less tangible factors such as global alignment and market attractiveness. It is important that such a move is carefully considered. A rushed approach is likely to result in increased risks, costs and inefficiencies, particularly given the unique nature of European markets which have multiple different market infrastructures and legal frameworks,” says Pete Tomlinson, director of post trade at AFME, in a press release.