NYSE COO: Concerns Over Halving Settlement Times 'Can Be Managed'

The video discusses the transition from T+2 to T+1 settlement in equity trading, highlighting the challenges and mechanics involved. It addresses concerns about operational risks and the need for careful implementation. The timeline for this transition is debated, with a focus on the involvement of key stakeholders like the SEC, DTCC, and bank regulators. The industry is increasingly committed to this change, which is seen as critical for improving investor engagement and market efficiency.

What is the primary focus of the transition from T+2 to T+1 settlements?

• Reducing transaction costs

• Improving investor engagement

• Enhancing trading speed

• Increasing market volatility

What is a potential risk of moving to a real-time gross settlement system?

• Increased transaction fees

• Operational challenges

• Higher regulatory scrutiny

• Decreased market liquidity

Who are the critical actors involved in the decision to move to T+1 settlements?

• NYSE and NASDAQ

• SEC and DTCC

• Federal Reserve and IMF

• World Bank and WTO

What additional stakeholders need to be engaged due to cash settlement elements?

• Hedge funds

• Credit rating agencies

• Bank regulators

• Retail investors

What is the industry's attitude towards the transition to T+1 settlements?

• Skeptical

• Committed

• Opposed

• Indifferent