We are ready for T+1. Are you?
Shortening the securities settlement cycle is a global objective, not a single market change.
This transformation is driven by data collaboration, which moves all markets towards real time pre-matching and reduces time and effort dedicated to error detection and resolution.
Why join the Synergy Network?
Moving to a T+1 settlement cycle will increase pressure on financial services operational teams and technology infrastructure. A significantly reduced investigation window means organisations can choose to either significantly increase operational teams or to introduce more systemic pre-matching, fails prediction and fails prevention.
AccessFintech’s Synergy solution is ready to help you absorb this additional effort whilst maintaining an efficient workflow that adheres to a T+1 settlement cycle.
Multiple Tier 1 banks, custodians and asset managers have already reduced their trade fail rates and, by joining the Synergy network, your organisation can do the same. Working with the Synergy network ensures data transparency, supports data collaboration and introduces clear and efficient workflow collaboration. This combination is proven to lead to increased timely settlement and optimised transaction costs.
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Data publishers across brokers and custodians
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Data receivers across the buyside
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Transaction updates per day
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Reduction in email traffic
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Reduction in high risk fails
Shortened Settlement Cycle Challenges
Reduced time to investigate mismatches
More preventable fails
Increased capital lock up
More manual effort
Technology infrastructure demand
Synergy functionality
Full lifecycle data transparency
Transaction pairing
Fails prediction and prevention
Data collaboration
Integrated, single UI workflow collaboration
MI & analytics
Full Lifecycle Management
The market is benefitting from AccessFintech’s Securities solution, which seamlessly supports organisations facing challenges linked to T+1 settlement. AccessFintech’s securities solution offers full data transparency through the matching and fails window, offering data pairing to support enhanced pre-matching and reduce fail rates.
Enhanced
Pre-matching
Data Pairing
Settlement
Structured Collaboration
MI & Analytics
Synergy eradicates common industry challenges
WITHOUT SYNERGY
WITH SYNERGY
Significant manual investigation, review and correction to achieve an average 95% settlement rate
Complete data transparency and transaction pairing from T0 allows for enhanced prematching and fails prediction
80% reduction of pre-matching window means significantly less time to investigate and correct pre-settlement discrepancies
Integrated, data driven workflow collaboration eliminates the requirement for extensive email exchanges to identify exceptions and agree route to resolution
Lack of detailed analytics, and time to review that data, means organisations are continuing to face repeat issues that could be eradicated
Synergy supports a comprehensive audit history and full suite of analytics to support claim handling, root cause analysis, and reporting
Why T+1
The market has long intended to shorten the settlement cycle with T+2 previously seen as a good interim step towards that and T+1 the next logical step. A reduced settlement cycle has the potential to protect investors and create efficiencies in the market whilst reducing exposure, risk, and margin/collateral requirements.
What is T+1
The introduction of a T+1 settlement cycle, as is now partially live in India, being actively considered for the U.S. (ETA 2024), and early stage discussion for Europe.
What is the impact?
Achieving the current average equity settlement rate of 95% in the U.S necessitates a considerable amount of manual investigation, review and correction. This significant operational effort is currently applied over two business days until COB T+1. Losing the investigation time on.
How can you prepare
Data transparency
Data collaboration
Workflow collaboration
Predict and prevent fails
Maximise STP rates
Adopt efficient exception management through the trade lifecycle
Collaborate with counterparts, clients and service providers
Reinforce effective
pre-matching processes
