Sumitomo Mitsui Trust is the first Japanese asset manager to adopt the ITP services through Nomura Research Institute’s (NRI) SmartBridge Advance – a collaborative offering built in partnership by DTCC and NRI.
Members of the multi-currency settlement system claim that development to accommodate a move in the initial pay-in schedule could take “considerable time to implement”, therefore CLS will not shift its cut-off but will analyse T+1 impact in June and September following cycle shortening.
Following the reveal of the UK’s T+1 plans, European task force says alignment of dates across the continent will reduce the complexity of implementation projects for firms active across multiple jurisdictions.
The move follows the successful third tranche of Clear Street’s Series B funding in December 2023 which raised the firm’s valuation to $2.1 billion.
Bank of America and State Street are set to support the service from its launch, anticipated in Q3 2024, adding to the likes of BNY Mellon, Citi and JP Morgan who are already behind the initiative.
DTCC encourages market participants to “ramp up their preparations and testing” and encourages continued collaboration between investment managers and their custodians.
Most concerns from market participants mirror those seen with the US shift to T+1, with additional worries surrounding exchange trading hours and post-trade windows, fragmentation of the region and increasing penalties.
The trade monitoring and exception resolution tool is aimed at improving settlement efficiency rates.
SGSS moves to retire the PAREL brand and deliver clearing, settlement and custody through an integrated model.
A new report from EFAMA estimates that roughly 40% of daily FX flows – representing between $50-70 billion - will no longer be able to settle through the CLS platform, resulting in increased risks.