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The Thursday T+1 trading conundrum

The TRADE

Given that the settlement cycle is now shorter in the US trading volumes on a Thursday have dropped off significantly thanks to funding requirements that require brokers to fund a position for an additional three days on Friday, Saturday and Sunday given the slightly longer settlement cycle in Europe, the UK, and most of Asia Pacific.

Trading 59
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SEC chair Gary Gensler urges UK to set T+1 transition date

The TRADE

The current timeline for the UK appears to include a plan being put in place in 2025 with the implementation of a T+1 settlement cycle in UK occurring no later than 31 December 2027. This, however, is still up for debate and subject to change.

Trading 64
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The TRADE predictions series 2025: Post-trade and the shift to T+1

The TRADE

This conversation is especially relevant as cross-border transactions grow in volume and as asset managers expand their investment in international markets. Kaisha Schnoll, assistant vice president, STP Investment Services In 2025, discussions around the UK and EUs transition to a T+1 settlement cycle are expected to intensify.

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