Euroclear’s Post

☝️Partial settlement and partial release are the tools available in most European CSDs that clients can leverage in order to achieve higher levels of settlement efficiency and hence decrease the settlement risk in European capital markets. 💪In the video, Céline Duquaine, ECSDA Settlement WG Deputy Chair, explains the situations in which these tools can help and how our member Euroclear has been able to help #CSDparticipants to enhance their use. 🏆Well done, Euroclear Settlement team! 👉The next move is the one of CSD Participants !

Now’s the time to put safeguards in place before the T+1 securities settlement cycle becomes effective this May. Find out how you can reduce risk to your business and stay on top of this approaching change: https://lnkd.in/ga5qrazK.

BREAKING: CLS Group will not make any changes to the current FX settlement cut-off after consultation with its members, putting an end to talk of an extension to ease concerns around timings for the impending shift to T+1 for US equities, now just seven weeks away. Here are the details:   ·     CLS concluded that the development to accommodate a move in its initial pay-in schedule - with a deadline of 00.00 CET deadline - would take members “considerable time to implement” – in some cases up to 12 months. ·     CLS will monitor the impact of the shift to T+1 and make assessments on the impact in both June and September through “temperature checks”. ·     Global Custodian understands from multiple sources that a handful of custodians are now looking to move their own deadlines. ·     CLS is reminding members that they can still submit their trades to CLSSettlement up to 06:30 CET for settlement that day. ·     A European Fund and Asset Management Association (EFAMA) report estimated that roughly 40% of daily FX flows – representing between $50-70 billion - will no longer be able to settle through the CLS platform, resulting in increased risks. CLS stressed however, that only related to the 1% of CLSSettlement ADV which it believes could be impacted by the move to T+1 and could settle outside of CLS. https://lnkd.in/e7pVZPU2

Now’s the time to put safeguards in place before the T+1 securities settlement cycle becomes effective this May. Find out how you can reduce risk to your business and stay on top of this approaching change: https://lnkd.in/e4tst8fX.

Now’s the time to put safeguards in place before the T+1 securities settlement cycle becomes effective this May. Find out how you can reduce risk to your business and stay on top of this approaching change: https://lnkd.in/gdtwcCVv.

The jury is out on the impact and yet it would be interesting to find out as we transition to T+1. I think the impact will be uneven between US on the one hand vs. Mexico and Canada on the other. Mexico, though lower in volumes, could potentially face a higher funding flow impact as clients adjust their T+1 funding and FX settlement avenues, without relying on higher credit usage.

🤔 One potential problem with current #Treasury-market clearing methods is that a counterparty may be unwilling to become a member of the Fixed Income Clearing Corp. (#FICC) and instead clear through a sponsored member, Patrick Parkinson, senior fellow at the Bank Policy Institute, tells Aerial View. Possible issues with that practice, he says, are that the counterparty is not passing on the margins that FICC requires also that they are only clearing trades where they are a counterparty instead of allowing clients to trade with a larger number of counterparties. #sec #investing #aerialview #aerialviewbites #bnymellon #cutthroughthecorporate

Starting May 27, 2024, Canadian securities markets will transition to a T+1 settlement cycle, reducing the settlement period from two business days (T+2) to one business day (T+1). The U.S. securities markets will follow suit on May 28, 2024, after Memorial Day. #TPlus1Transition #SettlementCycle #MarketEfficiency #CapitalMarkets #SecuritiesTrading #NorthAmericanMarkets #T1Settlement #FinancialMarkets #TradingUpdates #InvestmentNews

⏲️ In this final week before the transition to a T+1 settlement cycle, SIFMA's Tom Price discusses the industry's readiness, reviews resources available for a smooth transition, and highlights the benefits of a shortened settlement cycle ➡️ https://bit.ly/3QQLwmp #T1 #shortenedsettlement #capitalmarkets #finops