Custody Risk Winter 2014

Shortened settlement cycle apparently introduced without problems


In line with Target-2 Securities, the subject of much discussion during this magazine’s roundtable event at Sibos 2014, on October 6 the standard settlement period for equities traded in Europe was shortened from T+3 – the trade date plus three business days – to T+2.

Everyone now has one day less for margin calls, one day less to recall stock from loan, one day less to sort out foreign exchange trades. But the operational shift has not caused consternation.

Following this significant change in f