The arrival of T+1 settlements is a pivotal catalyst transforming operations across financial institutions. This faster settlement cycle promises increased efficiency, transparency, improved capital utilization, and greater financial resilience.

However, navigating this transition and the looming potential of a T+0 future will require a proactive approach, as shared by Blankfactor’s Heather Jordan (VP of Banking & Financial Services) and Malay Patel (SVP and Head of Delivery, Capital Markets). Leaders must anticipate the unintended impacts of T+1 on key areas of the business, including:

  1. Operational Efficiency: Meeting the settlement timeline may require significant refinements to operational processes like trade capture and confirmation.
  2. Risk Management: With reduced time for risk mitigation and error correction, robust risk management practices and AI solutions become crucial for identifying, assessing, and mitigating risks.
  3. Technology Infrastructure: Firms must ensure their systems are capable of processing trades and settlements swiftly, accurately, and at scale.
  4. Regulatory Compliance: Meeting regulatory requirements becomes more challenging as firms have a tighter timeframe for which to comply.
  5. Market Liquidity and Participant Coordination: A shorter settlement cycle can impact market liquidity and require enhanced coordination among brokers, custodians, and clearinghouses.

As firms implement compliance measures, they’ll need to assess their existing capabilities to ensure a seamless shift, analyzing the current status of technology, automation, and operational processes.

Gain crucial insights to prepare for the impacts of T+1 and beyond

Discover how Blankfactor can help your firm navigate a T+1 environment and beyond.

  • Uncover 5 key T+1 impacts: Understand how T+1 will reshape operations.
  • Assess the role of technology: Discover how technology enables compliance and operational efficiency in a T+1 environment.
  • Learn the 3 pillars of operational resilience: Build a foundation for success with T+1 and other compliance needs with data and digital transformation.

Download Blankfactor’s latest whitepaper today and unlock a competitive edge with T+1 and beyond. This paper also explores a key client case study on how Blankfactor is unlocking efficiencies for post-trade operations and how to manage common roadblocks to digital transformation.

Gain access to these exclusive insights and more. Download your copy of “T+1 and beyond: Navigating financial services transformation.”

Author information

Heather Jordan is VP of Banking & Financial Services at Blankfactor. She is a seasoned professional with over two decades of experience working in the financial services industry. She has spent much of her career supporting global banking institutions, with a focus on asset servicing and asset and wealth management. Heather has successfully led digital transformation programs as well as new product and service introductions, including GenAI strategy and implementation.

Malay Patel is an accomplished FinTech delivery leader with over 20 years of experience building and managing global consulting teams to deliver complex solutions for the financial services industry. As SVP and Head of Delivery for our Capital Markets practice, Malay oversees client engagements addressing key challenges in operations, technology, risk, and compliance in the capital markets domain.