T+1 likely to become unofficial industry standard, says Tabb

Massachusetts -- A new report by the Tabb Group, a consultancy based in Westborough, Massachusetts, argues that although the T+1 initiative may have been formally shelved by industry players, competitive pressures will force firms to rise to that standard fairly rapidly. The T+1 initiative was an attempt by US firms to trade and settle all transactions with 48 hours of the trade being executed.

"Currently T+1 is not on the docket and I don’t believe will be revived anytime soon," says Larry Tabb, chief executive of the firm, in an interview. "The way T+1 will play out will be from an efficiency perspective. The quicker a trade can get confirmed, allocated and affirmed, the less chance of there being a mistake and the lower the cost. Once best practices migrate to a higher level of real