T+1 settlement - Asian brokers & investors: factsheet

T+1 settlement in North America is creating a more complex operating environment for Asian brokers and investors. The challenge is not only faster processing, but the interaction between time zones, funding windows, foreign exchange (FX) execution and operational readiness across cross-border trade flows. 

Where will Asian firms feel the greatest impact from North America's shift to T+1? How can brokers and investors prepare for tighter timelines without increasing operational risk?

The factsheet examines the implications of T+1 for Asian market participants, focusing on the practical pressures created by shorter settlement cycles across affirmation, funding, FX management and securities lending. It highlights the areas where Asia faces a different risk profile from other regions and where preparation needs to be most targeted.

The research, sponsored by Broadridge, highlights:

• 88% of North American investors are ready for T+1: North America is significantly further advanced in readiness than Europe and Asia-Pacific

• 4.7 impact score for account opening: account opening is identified as the highest-impact operational issue for T+1 in Asia-Pacific

• Asian brokers may need to manage FX trades between 4am and 6am Hong Kong Time (HKT) to meet T+1 funding deadlines

• Compressed settlement timing is increasing pressure on pre-funding, cross-border coordination and overnight operational support