The shift to T+1 settlement, set for May 28, 2024, aims to halve market settlement risk, reducing the U.S. daily net obligation from $88 billion to $44 billion. Driven by 2020–2021 volatility, this change impacts equities, corporate debt, and unit investment trusts. The transition isn’t cost-driven but focused on reducing systemic risk. While automation will increase, manual processes may initially rise due to misaligned global cycles and complex workflows. The move is expected to spark global alignment, with the EU and UK considering similar steps. DTCC and SWIFT tools are recommended to ease migration and improve trade processing efficiency.

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