Reported 4 months ago
The transition to faster trade settlements for securities in the U.S. has encountered some processing bumps, although the switch from a two-day settlement cycle to a one-day cycle has been mainly smooth, according to market participants. The move, which also saw countries like Canada, Mexico, Argentina, and Jamaica implement the new settlement cycle, is aimed at making market infrastructure more resilient. While there were initial delays and apprehensions, overall, the transition to the new settlement regime is progressing well, with most trades settling successfully on the first day under the new system. Market participants expect increased trade failures initially as the industry adjusts to the faster settlement cycle.
Source: YAHOO