Roundtable Report: Moving from T+1 to T+0 to Tokenized Assets
Post Roundtable Report: Moving from T+1 to T+0 to Tokenized Assets
ISITC Europe recently held a roundtable discussion looking at ‘Moving from T0 to Tokenized Assets’ run under the Chatham House Rule, which was attended by a senior managers and experts from a cross-section of capital market firms. ISITC Europe Director of Industry Affairs, Gary Wright, moderated the session with Ian Perham senior consultant from Tori Global. taking notes. ISITC Europe would like to thank Tori Global for hosting this event.
The objective of the roundtable was to discuss the challenges facing settlement operations today and also in the future. This post roundtable report provides a snapshot of the discussion.
The natural starting point was of course T+1 preparations, which quickly led to a discussion on moving from T0 to Tokenized Assets. It was interesting that the discussion for T+1 was focused more on the opportunities to develop business opportunities than concerns around failed settlements. Perhaps the players in the market have now grown and are beginning to expand the issues to other related topics?
The participants discussed tokenized assets and the transformation of traditional markets. The timescales for the capital markets to adapt to tokenized and digitalized settlement. Which included the need for international standards and for Regulators to be more proscriptive to help the markets to innovate and produce better compliant solutions.
The age-old data problems received a good airing and the call from the group was to finalise what data standards are and plan for cross-market implementation. LEI was highly valued by the roundtable, but there was a degree of frustration that after many years it’s use is still not mandatory for all firms.
The issues of batch processing in a real-time settlement environment were highlighted as a major barrier for firms being able to build for international investors. However, the group felt that the UK and EU could compete with the USA capital market by utilising their time zone benefit to maintain 24/7 execution and processing.
FX costs created by CLS operating a two-day settlement cycle, whilst international investors settled in T+1 and in the future T+0, was flagged as a vital problem to solve. Ideas were discussed on how to mitigate the costs, ranging from pre-settlement funding (not attractive but functional) to including CLS within the CSD. Click here to read report
ISITC Europe is grateful to all the attendees for giving their time to create a lively and unique discussion. We look forward to further discussions at our future roundtables that will aim to delve deep into other topical issues.
About the Author of the Report
Ian is a senior securities industry practitioner with a 30-year track record of managing and supporting successful delivery across the financial services industry including exchanges, fund managers, wealth managers, investment banks, brokers, custodians, CSDs, banks, building societies and third party providers.
Prior to joining TORI Global, Ian worked on a range of projects covering business change, business analysis, migrations and outsourcing, remediation, regulation, strategy, business reviews, operational risk management, market research, systems implementations, client services, and interim management for clients including Barclays, Credit Suisse, Deutsche Bank, ING, NYSE Technologies and UBS.
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