T+1在U.S. on the horizon, firms are increasingly looking to automated solutions like the 中医® 工作流, 匹配指令(M2i), to support their move to accelerated settlement by compressing their current 帖子-trade processes into the span of just one day.
存管连接 sat down with 彼得·范登·诺特, 据导演, ITPvnsr威尼斯城官网登入管理, 以及中医的M2ivnsr威尼斯城官网登入主管, to talk more about M2i and how firms can prepare for T+1.
Related: The Impact of Accelerating to T+1 on Institutional Trade Flows
DC: What are some of the issues firms are facing to meet the new T+1 rule by 2024?
PV: 目前, firms are working on a T+2 timeline, meaning they need to finalize all their trades two days after trade date. With the SEC’s accelerated settlement requirements, firms need to streamline and compress their 帖子-trade processes to meet T+1; one day after trade date. A common area with opportunity for improved efficiency is the affirmation process. Many firms complete this manually or with the help of a custodian but could take advantage of automatic affirmation 工作流s to make this happen faster.
DC: How does M2i automate and streamline 帖子-trade processing and the affirmation process?
PV: 中医’s M2i 工作流 can automatically trigger trade affirmation and delivery of 直接转矩 eligible securities directly to 直接转矩 for settlement when a trade match between an investment manager and executing broker occurs. 客户端s utilizing an M2i 工作流 achieve the significant benefit of central matching and auto-affirmation compared to local matching and affirmation by the custodian or institution.
DC: Can you elaborate on what that means?
PV: 只要交易匹配, it is automatically sent into settlement reaching a level of straight-through-processing efficiency to hit that 9:00 PM Trade date cutoff. It is effectively taking the matched transaction in 中医 and submitting it as an affirmed confirm into the settlement cycle at the 直接转矩, 无手动触摸点.
DC: How can firms learn more about M2i as it relates to T+1?
PV: To help firms prepare, we’re offering a monthly 中医 T+1 Readiness Webinar Series with sessions tailored to both buy-side and sell-side 中医 clients. To register for upcoming webinars or view past recordings, please log in to the 它学习 Center. We use this forum on 它学习 to share ITP’s recommended best practices for 警报, 中医 and TradeSuite ID to improve compliance with the SEC’s T+1 rules. Additionally, we cover specific topics like Same-Day Affirmation Rates, 托管综合账户, and offer clients an opportunity to ask questions.
DC: How else can ITP services help firms get ready for the transition to U.S. T+1?
PV: 客户可以联系到 (电子邮件保护) to request their current affirmation rate and learn more about implementing an M2i 工作流. ITP数据分析 recently implemented Affirmation Reporting, which helps clients to see where they can automate and improve their processes specifically to increase their affirmation rates. The service also delivers metrics on clients’ matching capabilities in 中医.
For buy-side firms, having your Global Custodian maintain your SSIs via 警报’s Global Custodian Direct 工作流, ensures the most accurate instructions are provided to your trade counterparties.
最后, for clients who might not have the subject matter expertise or the resourcing to conduct a comprehensive impact analysis or execute on all the projects required to be ready for T+1 by 五月 2024, 存咨询服务 can help firms along every step of their T+1 readiness journey from impact analysis to project design and execution all the way through 帖子-implementation remediation.
To see dates and sign up for the 中医 T+1 Readiness Webinar, 点击这里, and contact us with any additional questions about T+1.