Feb 15 2024: Britain is gearing up for a significant shift in its share trading landscape, aiming to match the rapid transaction pace seen on Wall Street. However, rather than opting for an abrupt overhaul, the country plans to adopt a carefully phased approach, allowing market participants ample time to adapt their systems. This strategy was outlined by the chair of a government-commissioned review tasked with spearheading the transition. Beginning at the end of May, shares traded in the United States, Canada, and Mexico will undergo settlement—where legal ownership is exchanged for cash—within a single business day (T+1), a stark departure from the current two-day settlement period observed on Wall Street and across Europe. Charlie Geffen, who leads Britain’s Accelerated Settlement Taskforce, is expected to submit his comprehensive report to the finance ministry by the close of the following month. Geffen emphasizes that the discussion no longer revolves around whether to make the change, but rather focuses on the finer details of how and when to implement it. This phased strategy acknowledges the complexities inherent in such a transition, providing clarity and predictability for market participants while ensuring the stability of the financial ecosystem.
Britain’s Phased Strategy for Transitioning to Accelerated Share Trading
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