From T1 to T0 – Digital Settlement, Atomic Processing, and the Future of Post-Trade
From T+1 to T+0 – Digital Settlement, Atomic Processing, and the Future of Post Trade
Executive Summary
The second ISITC Europe roundtable hosted by Tori Global on the Future of Post Trade explored the transition from T+1 to T+0 settlement, highlighting the critical role of digital infrastructure, atomic settlement, and cross-sector collaboration. As the market prepares for accelerated settlement timelines, key industry players examined regulatory paradigms, operational bottlenecks, data integrity, and investor engagement.
- Regulatory Balance: Code of Conduct vs Mandate
A central theme was the trade-off between a voluntary code of conduct and formal regulation. While the former allows for agility and innovation, the latter ensures consistency, particularly across fragmented jurisdictions. A blended model was favoured, with formal structures underpinning innovation-led change.
- Market Infrastructure Transformation
Legacy systems are ill-suited for the demands of real-time processing. Euroclear and Crest are leading component-based transformation with political and financial backing from HM Treasury and European authorities. Asset managers remain challenged by cost and complexity, underscoring the need for modular digital infrastructure.
- The Case for a Common Ledger
Support is growing for a common ledger architecture to streamline securities, payments, and collateral across jurisdictions. Liquidity risk and funding inefficiencies (e.g., gross funding increasing from $46bn to $70bn due to reduced netting) are compelling drivers for atomic settlement and real-time clearing infrastructure.
- Crypto, Collateral, and the 24/7 Market
Markets are trending toward 24/7 operations. Digital assets, dynamic collateral flows, and tokenized instruments are transforming post-trade dynamics. Operational models must evolve to accommodate real-time reconciliation and jurisdictional complexity.
- Core Challenges Identified
- Fragmented reference data and lack of global standards
- Compliance inconsistency across regions
- Inventory and trade position visibility gaps.
- Fragmented issuer-CSD landscape in Europe
- Lack of investor education in post-pandemic financial markets
- Strategic Imperatives for the Industry
- Adoption of unified standards (e.g., CDM, LEI, ISO 20022)
- Oversight mechanisms for data and compliance interoperability.
- Retail and institutional investor education
- Real-time exception management via predictive pattern recognition
- Operational simplification (e.g., rationalisation led by TORI)
- Regulatory Interoperability
The MiCA regulation was highlighted as a foundational step in achieving cross-border supervisory consistency in digital assets. UK competitiveness remains challenged by issuance friction and fragmented processes, risking marginalisation against US capital market models.
Conclusion
T+0 is no longer hypothetical. The convergence of political will, operational urgency, and technological capability positions the industry at a critical inflection point. Progress will rely on scalable data standards, trusted and compliant architecture, and above all, sustained collaboration across the capital markets ecosystem.
“Real-time data, trust, and digital interoperability are the foundations of the next generation of capital markets infrastructure.”
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.
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