London – 1st May 2024: AccessFintech, the leading provider of real-time data insights and collaboration across financial markets, is working with BNY Mellon, the global financial services company, to bring a joint solution to the market for addressing foreign exchange (FX) workflow challenges ahead of the forthcoming T+1 settlement regulations.

Upcoming T+1 settlement regulations in North America are posing significant challenges for market participants. Significant attention has been paid to the immediate impact of the shortened securities settlement cycle, projecting increased fails rates and pressure on the international investor community from misalignment in cross border settlements. The immediate impact of these challenges is increased capital constraints due to higher fail rates and operating costs.

Funding and FX requirements are set to be a more complicated challenge, particularly for international brokers and investors operating across settlement jurisdictions and time zones. The complexity of misaligned settlement cycles means that these parties need to manage their FX requirements on trade date to settle within the T+1 window. Security transactions left with the broker to execute during US market hours results in FX requirements only being available after hours. The local FX funding window will need to be executed on a same day basis in a less liquid market than if the FX had been executed during US trading hours the previous day and with a T+2 settlement cycle.

BNY Mellon and AccessFintech are collaborating to work with clients on addressing this challenge, providing clarity on securities trades ‘predicted to settle’ status. Clients based on AccessFintech’s network will be able to instruct BNY Mellon to broker FX transactions based on these ‘predicted to settle’ insights before the end of the US trading day, helping to provide the necessary liquidity for international clients trading of US securities.

AccessFintech specialises in post-trade financial transactions where there is a distributed supply chain of organisations. AccessFintech enables optimal data transparency through the normalisation, visualisation, and ease of access to extensive transaction data on its Synergy platform. The Synergy T+1 solution ensures real time data transparency and cross-market collaboration through the entire transaction lifecycle, offering transaction data pairing to support enhanced pre-matching and reduce fail rates. Synergy further enables data visibility on T+0 with real-time local market information included for AccessFintech Synergy Network participants.

“At BNY Mellon, we are laser focused on developing solutions that support our clients’ investment performance and success,” said Jason Vitale, Head of Global Markets Trading, BNY Mellon. “Our collaboration with AccessFintech will provide clients the ability to leverage our recently launched Universal FX platform to fund their T+1 settlement activity in an efficient and transparent manner.”

Commenting on the relationship, Roy Saadon, CEO & Co-Founder at AccessFintech states: “BNY Mellon has the foresight to help clients across this challenging time in FX settlement. Together, we can achieve T+1 settlement by collaborating as a unified ecosystem.’