Commentary

Marianne Brown
Traders Magazine Online News

The Surprising Factor Financial Firms Need to Invest in To Accelerate Growth

When it comes to people, a firm's success relies on more than just the top contributors to the bottom line, according to FIS. In its latest report, shared with Traders Magazine, the firm says it actually found firms that are prioritizing investments in digital expertise are growing nearly twice as fast as their peers.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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November 1, 2001

Next Day Unsettled

By Gregory Bresiger

The three-day securities processing standard could be safe for another year.

Next day transaction processing - the so-called T+1 - could be delayed by one year. It should now become effective in June 2005, the Board of Directors of the Securities Industry Association has recommended to the Securities and Exchange Commission.

"The industry remains committed to straight-through processing leading to T+1," according to Donald Kittell, executive vice president of the SIA. However, he conceded that this "less aggressive pace" is needed so firms can "complete critical technology projects." He added that the events of Sept. 11 emphasize the need for more extensive straight-through-processing as well as the reduction of manual processing of trading information and the physical movement of check payments and securities.

Industry Testing

The new schedule would mean that those securities firms that expect to be ready for T+1 must be ready by the middle of 2004. They would be required to participate in a full year of testing so they could certify that they would have the technological infrastructure to meet the new standard in 2005.

Securities transactions now clear and settle in three business days after the transaction. The new T+1 standard - when it becomes effective - would mean trades would clear and settle on the next business day.