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We’ve always believed that every touch point for a business, when accepting payments online, needs to be easy to use, efficient, and fast. With the digital payments market in Malaysia projected to soar by an impressive 17.06% between 2023 and 2027, culminating in a market volume of $41.74
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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.
One trader for full-time responsibilities, and a backup for BCP (Business Continuity Planning) purposes or holidays, etc. In Asia, the focus is a bit different and the theme we’re seeing and hearing about is around pre-funding the FX settlement-related trades.
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. Mutual funds and ETFs in the US have largely adopted a one-day settlement cycle by business practice, aligning portfolios from treasuries to equities.
Companies That Issue Reliable/Predictable Dividends as a Business Policy – Many oil & gas transportation companies are like this, as are power/utility companies with regional monopolies on essential services like electricity and water.
Deal financing became more difficult and expensive, placing more emphasis on alternative funding and value creation. Deal momentum in the AI space was one of the main talking points for cross-border dealmaking in 2023, with some estimates projecting the overall market size will reach $407 billion by 2027.
Market participants readiness for key milestones, like the anticipated go-live of the European consolidated tape (CTP) in 2025 or the transition to T+1 settlement in the UK/EU in 2027, will be critical to ensure long-term success. Whilst these turning points may seem far off, the time to prepare is now.
There are a few big regulatory changes which are probably not going to go live in 2025, but will need technological and infrastructure-related preparation and change before 2026 and 2027. We already know the date 11 October 2027 less than three years away and people will need time to prepare, which means that the work should starts now.
As the industry moves towards a consolidated tape and the looming T+1 deadline, established players will likely continue positioning themselves to expand their market share or protect their existing trading, data, and technology businesses. European firms need to start preparing while learning from their US peers.
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