As the US inches closer to its implementation of a T+1 settlement cycle on May 28, 2024, the UK and EU are also exploring the case for accelerating settlement cycles in their markets to achieve greater industry harmonization and other benefits including reduced risk, 降低结算资金要求, operational efficiency and improved capital and liquidity utilization.
相关:随着T+1的临近，肯定进展
It is important to note that a successful transition to a T+1 settlement cycle in the UK and EU will require an increase to the current levels of 帖子-trade automation. The Association for Financial Markets in Europe (AFME) published a 2023年第四季度白皮书 that highlighted pain points in current securities processing in the region, such as data quality issues and counterparty behaviors that affect the ability to match and allocate trades, and recommendations on how these obstacles could be removed. T+1 therefore provides an opportunity to enhance operational efficiencies by encouraging market participants to automate manual processes and adopt industry standards and best practices.
交易后流程自动化
具体地说, trade matching is a critical part of the 帖子-trade lifecycle and serves as the first safety check after execution has taken place. When the buyer and seller agree on all the details of their transaction, 贸易竞争发生了, 和解程序开始了. 最重要的是, trade matching allows counterparties to identify exceptions that may cause the transaction to fail. The sooner firms can move to settlement and address trade fails, the better the chances of meeting an accelerated settlement timeline. 为了支持这一点, we recommend that the UK and EU markets consider mandating that trade confirmation, 分配和匹配在交易日期进行, 允许T+1结算.
Standing settlement instructions (SSIs) are another critical component of the 帖子-trade lifecycle, 因为它们在防止贸易失败方面发挥着关键作用. Manual SSIs and the absence of storing and sharing SSI data in a standard and automated fashion across the industry introduces risks and inefficiencies into the 帖子-trade process. 事实上, it has been observed that inaccurate or incomplete SSIs are often a primary reason for trade failures. Accurate, automated SSIs are key to the facilitation of accelerated settlement.
“Post-trade automation and standardization can increase settlement efficiency, 为T+1铺平了道路.”
To address both areas - trade matching and SSIs - firms should evaluate best practice solutions that automate and improve 帖子-trade processes. 今天, automated central matching platforms enriched with golden source SSI data and workflows that facilitate accelerated settlement already exist and are key to achieving greater settlement efficiency.
According to 存’s internal data most transactions leveraging an automated central matching platform are matched and agreed on execution date. 平均, over 90% of all EMEA cash securities transactions that utilize automation are fully allocated and matched on execution date. 同时, leveraging a central SSI repository can provide increased transparency and automation while significantly reducing trade failure. This is because all respective market participants seed the SSI data, access the SSI data and enrich the data from a single source, 以自动化的方式.
标准化的必要性
除了自动化的机会, the lack of standardization in 帖子-trade processing should also be an area of focus in the UK and EU. 目前, there is no uniform identification reference added to transactions that persists throughout a transaction lifecycle. Securities markets should look to how derivatives markets solved this problem with the introduction of Unique Transaction Identifiers (UTIs) for trade reporting purposes. The UTI allows transaction identification to happen near instantaneously and creates greater visibility across the transaction chain. This enables quicker identification and resolution of bottlenecks or settlement lifecycle issues, while reducing operational risks and costs arising from potential settlement fails. 标准的引入和增加使用, 例如UTI, supports the facilitation of accelerated settlement cycles globally.
这是可以理解的, settlement inefficiencies and risk receive a significant amount of attention from financial market infrastructures and regulators. 考虑到目前全球的利率水平, the cost of settlement failure has also increased and has a significant impact on client processing from a risk, 资金甚至资产负债表的观点.
Introducing greater levels of 帖子-trade automation and standardization can increase settlement efficiency, paving the way for accelerated settlement and reduced risk across the region while modernizing and advancing the industry’s capabilities. There is no better time than today to advance these conversations.
本文最初发表于 查看Eurofi杂志 2024年2月21日.