T+1 settlement: Clearing and settlement solutions

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The May 2024 shift to T+1 trade settlement in the United States has significant implications for investment managers and the finance industry. Early preparation is crucial to help ensure readiness, manage risk and avoid failed settlements.

We’re well positioned to support your shift to T+1 by offering a range of advanced services:
 

Custody is at the core of what we do. Our integrated custody services offer a differentiated approach, providing scale, proactive client engagement and a singular focus on driving technology innovation and continuous improvement. We leverage the knowledge we’ve gained from our enterprise T+1 program and engagement within industry working groups, sharing best practices for infrastructure, testing, conversion planning and support for the standardization of processes.

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Our StreetFX and Indirect FX products can help investment managers address the risks and challenges associated with T+1 FX processing. Our rules-based foreign exchange service enables investment managers to define their FX execution strategy and completely automate the FX trade execution lifecycle.

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Our GlobalLink suite of technology solutions offer investment managers the ability to execute trades and process post-trade confirmations across multiple banks in a seamless and timely manner. Our best-in-class execution, allocation and automation features allow you to streamline your trading workflows, accelerating confirmation and settlement time.

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Our post-trade solution supports the automated, straight-through workflows needed for a smooth transition to T+1. We offer centralized, post-trade processing with real-time, enterprise-wide visibility with end-to-end confirmation, reconciliation and settlement workflows.

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In the absence of a North American trading desk, APAC- and EMEA-based investors — who rely solely on local trade processing resources — should consider the ability for their existing infrastructure to support the new workflows required for trading in US/Canadian securities in a T+1 environment. Identifying gaps in the process (and how to address them) will come down to the available resources to address these internally by the cutover date. Alternatively, investors can look externally to partner with providers that are already set up to meet these requirements.

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Tighter settlement windows can create funding risk, which Sponsored Member Repo (FICC) can help to alleviate. For managers transacting across jurisdictions, shortened USD settlement cycles in comparison to other currencies and jurisdictions may present funding gaps. Our Sponsored member repo (FICC) offering provides a highly liquid outlet to raise cash against US treasuries, providing USD liquidity to bridge funding gaps. Sponsored member repo allows buy-side firms to unlock the benefits of centrally cleared repo (competitive rates, high liquidity, reduced counterparty credit risk) without having to satisfy the obligations of a direct clearing member.

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Managing ETFs in a T+1 environment requires a controlled, automated and expedited solution built to accommodate the nuances of the ETF lifecycle. Our solution supports the entire lifecycle from the point of order via State Street Fund Connect, to basket processing and primary market settlement through our ETF Global Platform.

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What’s new

Announcing T+1 settlement for FX trading

We’re integrating our StreetFX product into the DTCC’s workflow, reducing the securities settlement cycle to improve liquidity for traders, boost operational efficiency for quicker availability of funds, and help manage overall risk for the market.

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By the Numbers

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Need to optimize your global operating model to support T+1 readiness? We can help.