Vermiculus, a global leading market infrastructure provider, announced a strategic collaboration with the prominent capital markets research firm, GreySpark Partners, to release a comprehensive analysis of the T+1 settlement transition, which took effect in the U.S., Canada, and Mexico on May 28, 2024. This joint analysis examines how the transition has reshaped key aspects of market infrastructure, including risk exposure, operational workflows, and the role of automation in post-trade processes.

"The shift to shorter settlement cycles is a game-changer, forcing the industry to rethink operations and upgrade systems at speed," says Lars-Göran Larsson, Industry Expert at Vermiculus, and continues: "The North American experience reveals how this transition has influenced settlement processes and introduced new demands for managing administrative routines. It also sheds light on the growing importance of modern technology, where flexibility and high throughput are critical to success."

The first article highlights several key themes, including the immediate effects and implications of the transition, along with the challenges and benefits that have emerged, drawing on research and data from Acuity Knowledge Partners, Bloomberg, DTCC, Thomas Murray, and the US Securities and Exchange Commission.

"Understanding the impact of the T+1 transition on post-trade processes and infrastructure is critical for the entire financial ecosystem," says Taraneh Derayati, CEO of Vermiculus. "To provide the industry with meaningful insights, we partnered with GreySpark for their deep expertise in capital markets and financial infrastructure. Their strong track record made them the ideal partner to help clarify both the challenges and opportunities this shift presents".