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By Arnd HESSELER, Wolfgang SCHLAFFER, Yahya YOUSOFZAI Max WILLMEROTH, zeb consulting*
Settlement cycles in the securities business are about to undergo a profound change. Strong indications suggest that the European Union will shorten the settlement cycle for securities transactions to T+1, aiming to further reduce settlement risks and align with international standards.
The USA has already set the pace: as of May 2024, the US Securities and Exchange Commission (SEC) has shortened the settlement cycle for securities transactions in the USA from two days (T+2) to just one day (T+1).
Current discussions about T+1 in the EU follow international trend
The T+2 settlement cycle for...
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