Accelerated Settlement Challenges: Treasury/FX/Prefunding

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Accelerated Settlement Challenges: Treasury/FX/Prefunding

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FX Challenges

A T+1 Forum Event – Treasury/FX/Prefunding Challenges

Wednesday 1st November 2023



Background Information

The move to T+1 settlement in North America during 2024 and the intention indicated by the UK Accelerated Settlement Taskforce to follow suit in the UK create many business, technology and process challenges, which need to be fully explored. The ISITC Europe T+1 Forum series of roundtable discussions are designed to facilitate an in-depth, cross-industry understanding of those challenges and what solutions can be found for the short, medium and long term.

Each roundtable will be conducted under the Chatham House Rule, where no individuals or companies will be named, to facilitate a free and frank exchange of views. Sessions will be moderated by a member of the ISITC Europe T+1 research team and scribed by forum secretariat EY, to enable the production of a post session report, (complying with the Chatham House rule).

  • Our goal is to increase industry knowledge and understanding by defining the problems from both buy and sell side perspectives.
  • To discuss potential solutions i.e., amending business/operational processes, adapting existing technology or implementing new technology.
  • To assist with strategic planning and development.
  • To find a successful path to T+1 settlement implementation for everyone.

Kindly hosted by EY

Location: EY, 25 Churchill Place, Canary Wharf, London, E14 5EY

Time: 12:15 – 12:45 Lunch  – 12:45 Welcome/Opening Address  followed by roundtable discussion – 14:15 Close

This is the second in a series of roundtable discussions which will be moderated by Tony Freeman examining the impact of accelerated settlement. It will focus on treasury challenges facing the provision of foreign exchange and the associated area of prefunding, which is especially challenging with the North American migration to T+1, and will eventually need to be considered for UK and European T+1. The international discrepancy that has been created by North America moving to T+1 will create a funding gap as most of the international markets operate a standard of T+2. The aim will be understand and define the problems across the transaction chain and discuss possible solutions. Likely areas of discussion will include:

  • What will be the impact on firm’s treasury operations?
  • What will the costs be of resolving the prefunding and FX challenges?
  • How can firms mitigate the financial costs and is prefunding the industry answer?
  • How will best execution requirements be impacted?
  • What impact will this have on the Consumer Duty regulations?
  • Will the FX market need to consider moving to T+1?