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GET READY TO SETTLE IN NORTH AMERICAN MARKETS IN ONE DAY

Background

  • 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)

  • 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

  • Asset owner consultants will consider operational excellence regarding T+1

This is useful for

European, UK, Swiss Asset Managers & Banks...

With investments in the US, Mexico, and Canada for their private, institutional clients, funds and global custody mandates.

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

  • The assessment covers the entire lifecycle: from distribution to custody booking and reporting

  • Stress factors such as turnover will be considered

  • The result is a heatmap in terms of products, strategies, and lifecycle steps impacted the most

Recommendations to close the respective gaps

  • Summary of operating model gaps related to the potential impact and readiness

  • Short to long-term recommendations to close each gap

  • High-level roadmap and cost estimates per recommendation

Assessment of operating model readiness

  • Readiness assessment will cover the same scope of products and strategies, and it may also consider planned products

  • This assessment covers the entire lifecycle and focuses on lifecycle areas with the highest impact potential

  • The result is an overlapped heatmap to highlight the combination of impact potential and operational readiness

Solution implementation

  • Implementation of relevant short to long-term solutions

  • Solutions can be custodian negotiations, partnerships, outsourcing agreements, platform selections, system integrations and implementations

  • Fast delivery of changes to avoid/limit unnecessary charges and/or reputational impact with asset owner consultants

Benefits

  • Keep high scores of operational excellence in DDQs and asset owner consultant reviews

  • Maintain competitive broker commissions and spreads in markets that account for 70% of cash equities and 40% of cash bonds

  • Avoid paying 4-8 bps in overdraft and broker penalty charges per day

  • Ultimately reduce the trade processing cost by improving your operating model(s)

Why TGGC?

  • Thought leader in Europe (e.g., joint educational events in Europe with global banks)

  • Experience in front-to-back processes and thus quick understanding of problems and respective solutions (we come from the buy-side)

  • Vast network of solution providers (e.g., outsourcing, matching technology, Portfolio and Execution Management Systems)

Your partner

Meet Christian Cebreros

Managing Partner

  • LinkedIn
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