US Plan to Speed Stock Settlements to Cost Investors $30 Billion
- Bloomberg Intelligence estimates impact of faster settlement
- Changes set to take place in May will also affect FX investors
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US regulators’ plan to speed up settlement times in securities markets will come at a cost for investors around the world — more than $30 billion annually, according to a new report from Bloomberg Intelligence.
Settling trades in one day instead of two — under a system dubbed T+1 — will strain the business of loaning and recalling shares used for short selling, require financing to ensure deadlines can be met and, along the way, risk telegraphing pending stock sales to people betting prices will fall, the researchers found.