In terms of next steps, ESMA expect to publish a final report by 30th September 2024.
T+1 Settlement
Work to support members with the transition to T+1 settlement remains a key priority for the IA. Below we provide relevant updates per jurisdictions:
North America – The US will go live with a transition to T+1 Settlement by the 28th May 2024, with Canada and Mexico transitioning on the 27th May instead as they do not share the US national holiday.
In March 2023, the SEC published FAQs on the transition. The FAQs include a re-iteration on their views around extended settlement (namely that it has not been modified from the rules pre-transition, firms can leverage extended settlement but that it is intended for use in unusual or limited circumstances). The FAQs also provide further colour on scope.
The IA has been working with members to explore the challenges and potential solutions for firms in addressing the change, including on FX, fund settlement, the trade matching