In light of the US’ imminent shift to T+1, State Street has today unveiled an automated workflow solution, as well as offering integration with DTCC within its FX trading service, StreetFX.
The US Securities and Exchange Commission (SEC) decision to shorten the settlement cycle to one business day comes into effect from 28 May next year.
In Europe, the European regulator launches a call for evidence to assess the impact of a shorter settlement cycle on the continent; final report scheduled for Q4 2024.
Tony Bisegna, head of State Street global markets, said: “State Street is helping to drive solutions that address critical performance drivers by rolling out an automated FX execution solution to facilitate the US securities market’s transition to T+1 settlement. This innovative advancement is another example of State Street’s commitment to providing industry-leading firsts to our clients.”
Through the connection to DTCC Institutional Trade Processing (ITP) and its central trade matching platform, CTM, State Street’s FX trading service can now receive settlement instructions from DTCC ITP for match agreed CTM transactions.
StreetFX can be integrated within clients’ existing infrastructure in order to create an end-to-end solution.
Val Wotton, DTCC managing director and general manager of ITP, said: “CTM’s open architecture enables us to work with multiple firms within the industry to support the industry’s move to T+1 next year.
“We are pleased that our collaboration with State Street reinforces that CTM represents an efficient and cost-effective solution to address the FX trading challenges that come with a shorter settlement cycle. We look forward to working with a broad range of market participants over the coming months to help them prepare for a seamless transition to T+1.”