VIDEO INTERVIEW | With T+1 testing now underway since the Depository Trust and Clearing Corporation (DTCC) launched it in August, the transition to shorter settlement cycles is a hot topic at Sibos 2023. Michele Hillery, general manager of equity clearing and settlement at DTCC talks to us about the progress she has observed so far.
“Across the board, we have seen the industry as a whole, particularly within the US, focusing on analysing the global workflows to really get a keen sense of what needs to change. That’s pretty universal and I think that’s the right starting point,” Michele Hillery shares.
“Further to that, most firms are looking at how they are going to enhance and build resiliency into their systems – given the compressed timeframes, resiliency becomes even more profoundly important.”
As for European market participants who may be affected by the change, Michele Hillery singles out “pockets that have been highlighted that firms need to look at”, including “FX operations, stock loans, and funding”.
“I think there has been – at least in the past – the perception that this change may not apply to them because they are not trading in the US.” But she is of the opinion that Europeans should “really look at what needs to change on your side in order to support T+1 settlement in the US.” After all, “the rule is on settlements – it’s not about who.”
Michele Hillery shared the stage on the first day of Sibos 2023 in a session titled “Unlocking the full potential of the Unique Transaction Identifier in securities” with:
Hannah Elson, global head of custody, JP Morgan,
Cate Grant, global head of market solutions, Goldman Sachs, and
Roy Saadon, CEO, AccessFintech, under moderation by
Virginie O’Shea, founder and CEO, Firebrand Research.
Sibos 2023 played out in Toronto from 18 to 21 September, with about 9,000 registered delegates. We were there, producing mainly video interviews, but also some text pieces. Overview our coverage here.