The U.S. market's transition to next-day (T+1) settlement for trading in securities aims to reduce risks and enhance efficiency. However, this change presents challenges for ETF issuers, marketmakers, and asset managers, particularly regarding mismatches in settlement schedules across different jurisdictions. The industry is preparing to adapt with additional collateral and liquidity management strategies.
Move to Faster Stock Settlement Creates Unique Hurdles for ETF Market usnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from usnews.com Daily Mail and Mail on Sunday newspapers.
A new rule called T+1 settlement is speeding up how fast buy and sell trades will be settled to one day. While the regulation is designed to make markets more efficient, it may create some challenges for financial firms.