Market participants believe shorter settlement cycles are on the horizon, Citi survey finds

Market participants believe shorter settlement cycles are on the horizon, Citi survey finds

LONDON–(BUSINESS WIRE)–A Citi survey shows that market participants around the world increasingly believe that shorter settlement cycles will become a reality.

The second edition of Citi’s “Securities Services Evolution” white paper shows that 51% of market participants expect the effective settlement period for equities to be T+1 by 2026, an increase of seven points compared to last year’s survey. This sentiment is supported by several key markets recently moving towards a T+1 settlement cycle, including the United States, Canada and India.

Okan Pekin, Global Head of Securities Services at Citi, said: “We are seeing a greater sense of momentum and purpose in all industry developments, especially the determination to move to a T-settlement cycle. +1. Implementing these changes will not be an easy task, but in due course will offer the prospect of very substantial savings and efficiencies. »

Citi’s white paper includes quantitative and qualitative data gathered from 12 financial market infrastructures (MFIs) and nearly 300 market participants across banks, broker-dealers, asset managers, custodians and institutional investors across the world. whole world. Collectively, this information continues to provide a rare and holistic view of ongoing developments in the global securities market ecosystem.

Here are some new findings from this year’s white paper:

  • 88% of market participants said their organizations were actively participating in or exploring use cases for digital assets, blockchain, or distributed ledger technology (DLT).

  • 54% said a DLT-based market infrastructure could reduce post-trade processing costs by 10-30%.

  • 79% believe that the atomic settlement is achievable in less than 10 years.

  • 92% see the value and benefits of tokenization for market liquidity and variety of tradable assets.

MFIs and market players continue to hold opposing views on a number of issues. For example, MFIs see reduced risk as a major benefit of shorter settlement cycles, which in turn will lead to lower margin requirements and capital release. In contrast, only 17% of market participants surveyed agreed.

On the other hand, MFIs and market players have come together on their views regarding the role of DLT in facilitating a successful transition to T+1/T+0. MFIs believe that while DLT has a role to play, it is not an essential requirement. Only 21% of market participants (compared to 40% last year) believe that DLT will be at the heart of a shortened settlement cycle.

With more than $25 trillion* in assets under custody and administration and with an industry-leading proprietary network spanning more than 60 markets, Citi Securities Services offers clients deep local market expertise in the field, post – Innovative trading, customized data solutions and a wide range of custodial and fund services that can be tailored to meet client needs.

*As of 06/30/2002, represents the total of assets in custody, in administration and in trust.


Citi is a leading banking partner for institutions with cross-border needs, a global leader in wealth management, and a popular personal bank in its home market, the United States. Citi does business in more than 160 countries and jurisdictions, providing businesses, governments, investors, institutions and individuals with a wide range of financial products and services.

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