T+1 to increase costs and volumes in ETF securities lending

Quick Summary:

The US, Canada and Mexico moved to a shortened settlement cycle at the end of May for US equities and corporate bonds from two business days after the trade date, referred to in the industry as T+2, to one day, or T+1.

Others agreed that the move to T+1 would trigger more activity in the securities lending market.

However, the International Securities Lending Association said the difference in settlement cycles between the US and Europe creates a “misalignment” that will lead to extra costs in the ETF securities lending market.

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Article Details

Author / Journalist: Vibeka Mair

Category: MarketsFinanceInvesting

Markets: United StatesCanadaMexico

Topics: Increase Time Securities Industry Fund Financial Market Activity Lending Short Settlement

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-06-28 @ 04:00:28 (2 days ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 636 words

Reading Time: 4 minutes read

Sentences: 21 lines

Sentence Length: 31 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 21407087

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Official Website: ft.com

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