Global Markets Adapt to T+1 Settlement: A Year in Review

The transition to T+1 settlement cycles in North America has reshaped global capital markets, with the U.S., Canada, and Mexico leading the charge since May 2024. Overseas investors faced significant adjustments, while regions like the UK and EU aim to synchronize by October 2027. The shift demanded $30bn in industry-wide investments—spanning system upgrades, operational overhauls, and training—yet trade fail rates remained stable, defying earlier concerns.

Automation and straight-through processing (STP) proved critical to success. Asset managers achieved a 97.5% same-day affirmation rate post-implementation, up from 92% in early 2024. ’This is a game-changer,’ noted Lars-Göran Larsson of Vermiculus, whose report with GreySpark Partners underscores the irreversible momentum toward efficiency. The financial sector’s rapid adaptation signals a new era of accelerated settlements, with Ripple effects yet to be fully realized.