GET READY TO SETTLE IN NORTH AMERICAN MARKETS IN ONE DAY
Background
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Canada and Mexico will shorten their settlement cycles from T+2 to T+1 on May 27th 2024 and the US on May 28th 2024 (together they represent >70% of the world market cap)
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European, UK, and Swiss players are particularly challenged as they won’t have the one day for exception handling they have today. They will only have a few morning hours
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Asset owner consultants will consider operational excellence regarding T+1
This is useful for
European, UK, Swiss Asset Managers & Banks...
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With investments in the US, Mexico, and Canada for their private, institutional clients, funds and global custody mandates.
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Total time to the US (Canada and Mexico are switching one day earlier) settlement cycle shortening:
365d
24h
60m
60s
Our Services
Description of impact on products, processes, and technology
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The assessment covers the entire lifecycle: from distribution to custody booking and reporting
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Stress factors such as turnover will be considered
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The result is a heatmap in terms of products, strategies, and lifecycle steps impacted the most
Recommendations to close the respective gaps
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Summary of operating model gaps related to the potential impact and readiness
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Short to long-term recommendations to close each gap
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High-level roadmap and cost estimates per recommendation
Assessment of operating model readiness
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Readiness assessment will cover the same scope of products and strategies, and it may also consider planned products
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This assessment covers the entire lifecycle and focuses on lifecycle areas with the highest impact potential
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The result is an overlapped heatmap to highlight the combination of impact potential and operational readiness
Solution implementation
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Implementation of relevant short to long-term solutions
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Solutions can be custodian negotiations, partnerships, outsourcing agreements, platform selections, system integrations and implementations
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Fast delivery of changes to avoid/limit unnecessary charges and/or reputational impact with asset owner consultants
Benefits
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Keep high scores of operational excellence in DDQs and asset owner consultant reviews
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Maintain competitive broker commissions and spreads in markets that account for 70% of cash equities and 40% of cash bonds
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Avoid paying 4-8 bps in overdraft and broker penalty charges per day
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Ultimately reduce the trade processing cost by improving your operating model(s)
Why TGGC?
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Thought leader in Europe (e.g., joint educational events in Europe with global banks)
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Experience in front-to-back processes and thus quick understanding of problems and respective solutions (we come from the buy-side)
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Vast network of solution providers (e.g., outsourcing, matching technology, Portfolio and Execution Management Systems)
