Compliance, Controls and Data: Are We Ready for T+1?
Compliance, Controls and Data: Are We Ready for T+1?
I had the privilege of attending an excellent ISTIC Europe Market Roundtable hosted by TORI Global, bringing together compliance, operations, and strategy leaders from across the financial services industry. With the T+1 settlement deadline rapidly approaching, the session was both timely and thought-provoking.
Market Context and the Ecosystem at a Crossroads
Gary Wright set the tone by highlighting the complexity we face as an industry—balancing regulatory mandates with operational execution, while navigating the grey space between self-regulation and regulator-driven change. What became clear is that change cannot be delivered in isolation. A whole-ecosystem approach is required: front office, ops, compliance, and technology working in lockstep.
Does Compliance Drive Strategy?
This question framed much of the discussion. Increasingly, the answer appears to be yes—when compliance is a trusted partner. Those firms that integrate compliance into the first line of defence, embed risk frameworks like BCBS 239/29, and align with the Chief Data Office are better placed to respond to regulatory demands while delivering operational alpha.
Key Themes That Emerged:
- Governance and Ownership
Fragmented data, unclear ownership, and inconsistent processing standards are limiting progress. Cross-border challenges (UK vs EU vs US) and digital frictions are amplifying the need for unified governance.
- Data Traceability and Control
Traceability is becoming a strategic imperative—not just for compliance, but for operational confidence. As compressed settlement windows become the norm, stitching together the trade lifecycle in real-time is no longer optional.
- The Cost of Real-Time
Multiple speakers noted the 5x increase in cost and complexity when shifting to real-time controls. The trade-off between near-instantaneous reporting and ROI must be measured and deliberate.
- FCA Oversight and Future Risks
With Market Watch 81 and the FCA’s growing oversight function, the mood is clear: if self-regulation falters, formal regulation may follow. Firms need to take proactive steps to get ahead of the curve.
Calls to Action for Industry Leaders:
- Embed risk and compliance into the first line and make control frameworks business-owned.
- Focus on pre-process data quality to avoid last-mile settlement friction.
- Treat data as an enterprise asset—democratize it with safeguards, especially given remote access and cyber concerns.
- Collaborate across regions and functions—the T+1 challenge is a global one.
ISITC would love to hear how others are approaching the T+1 shift—especially from compliance, operations, and technology leaders. Are you seeing alignment between your risk, data, and strategy teams?
By Nicholas Hamilton
About the Author
Nicholas Hamilton is a Capital Markets Domain Expert. Formerly an Executive Director, with over two decades at JP Morgan, he spearheaded Global Architecture, Infrastructure transformation, industry development and advocacy for Capital Markets and global operations at institutional and industry level.
His focus has been on driving change, improving transaction lifecycle delivery, implementing strategic operational controls, process and operating model improvement. By fostering a culture of innovation and efficiency in talented teams, he has delivered impactful solutions that resonate across the financial industry.
Leave a Reply
You must be logged in to post a comment.