This academic paper is written from research commissioned by the SWIFT Institute discusses the progress made towards T+1 and instantaneous settlement in financial markets, and industry preparedness for such a change. It covers the various equity settlement technologies and analyses how collateral, stock lending and margin requirements can impact the settlement processes.
The debate on shortening the equity settlement cycle is discussed, along with potential policy recommendations based on industry preparedness.
The findings of this study will help stakeholders identify gaps in their current settlement processes and develop strategies to meet the demands of accelerated settlement.
Written by: Anthony Gandy, Visiting Professor, London Institute of Banking and Finance, Daniel Broby, Professor, Ulster University Business School, Gary Wright, Director, ISITC Europe, Tony Freeman, Director, ISITC Europe and Mark Durkin, Professor, Ulster University Business School