We are pleased to share that our President, Brokerage Services James St. Clair was featured in the latest episode of At the Forefront: Fintech Conversations!
Sitting down with Forefront Communications’ SVP CJ Lengua, James discussed a timely topic for the capital markets industry: the transition to T+1 settlement. With the rule change going into effect on May 28, James and CJ examined the importance of adequate preparation, concrete steps that affected firms can take and the ways ViewTrade is helping its clients get ready for this momentous shift.
To start, James and CJ reviewed the various aspects of the trade lifecycle that will be impacted by the shortened settlement cycle. With the timeline essentially cut in half, James explained how this will create an array of challenges in areas from the escalated payment process and post-trade matching affirmations to client-facing trading platforms and reference data. Even minute details like updates to client-facing documentation, corporate action processing and internal accounting systems will need to be examined.
However, the most critical priority of all will be ensuring the timely funding of transactions. Firms and clients must plan on holding reserves and cash to provide liquidity. As a global firm that currently offers access to both US and international markets in over 26 countries, funding trading activity in a T+1 environment is critical to ViewTrade’s operations.
Next, the conversation pivoted to what firms can do to prepare for a T+1 settlement cycle. James stressed that this will require buy-in from the highest levels of management as well as throughout the organization, as it will impact every department, from trading and cashiering to compliance and operations. Firms should scrutinize their existing processes and systems and work toward evolving them to keep pace. A company is only as strong as its weakest link, and one underprepared element can potentially disrupt entire workflows.
James and CJ then discussed what makes ViewTrade a logical partner to help firms navigate this cross-departmental challenge. For over 20 years, James explains, technology has been the driving force behind ViewTrade’s business, enabling the firm to build a strong track record of helping clients successfully navigate a wide range of industry transitions such as Y2K and T+2 settlement. The team has developed in-house trading technology systems that provide an advantage over other firms that may rely on disparate solutions that are patched together.
ViewTrade has proven to be nimble and flexible enough to change with the times, and its regular communication and needs-based consultation with clients make it a true partner in navigating industry challenges – it is more than just a vendor or service provider. Lastly, ViewTrade manages its own books and records, with self-clearing as part of its business model, enabling it to produce necessary reports to clients on a timely basis. By reducing the number of links in the settlement chain, ViewTrade can effectively minimize risk in a highly involved transition period such as the shift to T+1.
Check out the full video below!
