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Update on the impact to CLSSettlement following the move to T+1 for securities settlement in the US (Q3 2024)
Before the implementation of T+1 for securities settlement in the US and Canada, we analyzed CLS transaction data to assess how the move could impact asset managers and funds that settle via CLSSettlement, and estimated that any potential impact to CLSSettlement average daily value (ADV) may be limited.
After the T+1 implementation, CLSSettlement average daily settlement values (ADV) have increased from USD6.98 trillion to USD7.6 trillion, with the year-to-date ADV reaching USD7.18 trillion,[1] reflecting no negative impact to CLSSettlement after the transition. It is worth noting that submissions from funds have also increased.
This underscores the readiness of both the buy and sell sides ahead of the move, with CLSSettlement continuing to provide the stability, risk mitigation and efficiency necessary for the smooth functioning of the FX market.
[1] Source: CLS data (1 Jan to 30 Sep 2024)