Asset Managers Warn of Failed Trades as US Market Speeds Up
- Largest stock market will shift to one-day settlement in May
- Switch will put American securities out of step with FX trades
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Global investment houses are bracing for more failed trades as a result of plans to halve the time it takes to settle American stock transactions to just one day.
Around 60% of asset managers fear a higher rate of settlement failures will be the consequence of regulations coming into force in May that will speed up the time it takes to complete a US security trade. That’s according to SIX Group’s Future of Finance report, which polled 343 C-Suite executives at financial institutions from around the world.