{"id":7975,"date":"2024-05-09T02:48:23","date_gmt":"2024-05-09T10:48:23","guid":{"rendered":"https:\/\/www.indataipm.com\/?p=7975"},"modified":"2025-03-21T13:56:49","modified_gmt":"2025-03-21T21:56:49","slug":"the-countdown-to-t1-what-indata-is-doing-to-assist-clients","status":"publish","type":"post","link":"https:\/\/www.indataipm.com\/the-countdown-to-t1-what-indata-is-doing-to-assist-clients\/","title":{"rendered":"The Countdown to T+1: What INDATA Is Doing to Assist Clients"},"content":{"rendered":"<p><img decoding=\"async\" class=\" wp-image-8149 alignright\" src=\"https:\/\/www.indataipm.com\/wp-content\/uploads\/2023\/09\/T1HopmepagePod-003.jpg\" alt=\"t+1\" width=\"187\" height=\"187\" srcset=\"https:\/\/www.indataipm.com\/wp-content\/uploads\/2023\/09\/T1HopmepagePod-003.jpg 220w, https:\/\/www.indataipm.com\/wp-content\/uploads\/2023\/09\/T1HopmepagePod-003-150x150.jpg 150w, https:\/\/www.indataipm.com\/wp-content\/uploads\/2023\/09\/T1HopmepagePod-003-80x80.jpg 80w, https:\/\/www.indataipm.com\/wp-content\/uploads\/2023\/09\/T1HopmepagePod-003-45x45.jpg 45w\" sizes=\"(max-width: 187px) 100vw, 187px\" \/><\/p>\n<p><strong>On May 28, 2024, U.S., Canadian, and Mexican equity trades will settle on a T+1 basis. <\/strong>As a software and services provider to the buy-side, we have been working diligently with our trade settlement partners to ensure that this change is pain-free for our mutual clients.<\/p>\n<h5><strong>UPDATE:<\/strong><\/h5>\n<p>As the industry races to the finish line for T+1, market participants are reviewing their final preparations internally and with their vendor partners. For more on this from an industry perspective, DTCC has some content including ways to look for \u201c<a href=\"https:\/\/www.dtcc.com\/dtcc-connection\/articles\/2024\/april\/29\/trade-settlement-know-your-t1-blind-spots?mkt_tok=NjY5LVFJTC05MjEAAAGS_IVp5CqkDcBV3qmPGEyCKJNbmf4fA53ovIXTmGMob9dQGOH6mURiawDOrXja0uiPWoZMCkWcH8OtQGwBbCbnxza2uPwSJ5DHO10fbdQg88ZRVwvCNHVSPd8\" target=\"_blank\" rel=\"noopener\">blind spots<\/a>\u201d in their process.<\/p>\n<p>From an INDATA perspective, changing the default trade settlement period on INDATA is a simple process that can be managed by each individual client in most instances. For many INDATA clients, you simply navigate to <strong>BackOffice -&gt;<\/strong><strong> File -&gt;<\/strong><strong> Table Maintenance -&gt;<\/strong><strong> Asset Classes, Market Categories, and Settlement Periods.<\/strong><\/p>\n<p>For clients with only US securities, the adjustment can be made directly in the <strong>Default Settlement Period (days) column<\/strong>, for the appropriate asset classes.<\/p>\n<p>For clients that invest globally (non-US) but have separate asset classes for domestic and international securities, the change can be made directly in the column for <strong>Default Settlement Period (days)<\/strong>.<\/p>\n<p>Clients that invest in global markets but use one asset class for international and domestic securities will need to adjust the <strong>Default Settlement Period (days) column<\/strong> on the second tab called <strong>Settlement Periods by Currency Code<\/strong>.<\/p>\n<p><strong>This change needs to be made after the trading day has been closed on 5\/27\/24 and before BackOffice Morning Procedures is run on 5\/28\/24<\/strong>. If your firm has any questions regarding setting changes related to T+1, please <a href=\"https:\/\/www.indataipm.com\/contact\/\">contact the INDATA support team<\/a> who will be happy to assist further.<\/p>\n<h2><strong>Potential Industry Challenges<\/strong><\/h2>\n<p>While such a seemingly monumental industry change presents a concern for trading and operations, it is essential to remember that the change from T+3 to T+2 back in 2017 went smoothly and without issue for <a href=\"https:\/\/www.indataipm.com\/\">INDATA<\/a> clients. In fact, much of the burden for the upcoming change will be imposed on the sell side broker\/dealer community and other market participants to comply with the requirement.<\/p>\n<h3><strong>As an INDATA Client, You Are Already There<\/strong><\/h3>\n<p>The good news is that all INDATA clients already have the software in place to accommodate T+1. Additionally, INDATA\u2019s industry-leading <a href=\"https:\/\/www.indataipm.com\/trade-order-management\/\">OMS<\/a>, <a href=\"https:\/\/www.indataipm.com\/portfolio-management-software\/\">portfolio management<\/a>, and <a href=\"https:\/\/www.indataipm.com\/portfolio-accounting-software\/\">portfolio accounting<\/a> solutions can also already handle same-day trade settlement, i.e. T+0.<\/p>\n<p>With that said, INDATA will be supporting clients directly by making them aware of how their software works so that system settings and any configuration changes required by external trade settlement providers can be made directly by clients themselves or with the assistance of INDATA\u2019s client support team.<\/p>\n<h2><strong>Functionality Overview<\/strong><\/h2>\n<p>For clients handling their own system administration, changing the default trade settlement period on INDATA is a simple process. You simply navigate to the appropriate software menu and make the change within the form which is listed by settlement currency. For other clients, the INDATA support team will handle this for you when the time comes, making it easier than ever.<\/p>\n<h3><strong>Further Enhancements Made by INDATA for Automating Trade Settlement<\/strong><\/h3>\n<p>Above and beyond an easy-to-use software interface for changing settlement to T+1, we have made available some additional features that make settling trades that much easier or even automate the entire process altogether without end-user involvement. For example, INDATA clients that are using trade settlement services from certain custodians can have their entire process automated so that trade allocations are sent out for settlement in 15-minute intervals throughout the day as opposed to having to do it themselves. INDATA also supports sending out trade allocations via FIX with a number of brokers and industry providers, giving clients a leg up on their trade settlement process.<\/p>\n<h3><strong>Industry Best Practices Surrounding T+1 for INDATA Clients<\/strong><\/h3>\n<p>With this in mind, it is important to point out best practices for trade settlement, whether conducted directly by traders themselves or by the ops team acting on behalf of the trading desk. Without a doubt, the best practice is to <u>not<\/u> wait when it comes to sending out trade allocations, matching trades, and making any necessary trade corrections, i.e. waiting until end-of-day or the next day. According to DTCC, current processing shows that only about 20% of allocations are being sent throughout the trading day, and the remaining 80% of allocations occur after the market closes on Trade Date.<\/p>\n<p>Clients should utilize the software tools directly within their INDATA system to connect and send trade allocations to Omgeo CTM, NYFIX Match, via FIX to brokers directly, or any other custodian-sponsored trade settlement service that is in use. Sending allocations throughout the day and matching trades significantly mitigates the risk of trade errors happening downstream and potentially outside of the upcoming T+1 window.<\/p>\n<h2><strong>We Are There When You Need Us<\/strong><\/h2>\n<p>Please feel free to reach out to any <a href=\"https:\/\/www.indataipm.com\/contact\/\">INDATA representative<\/a> you have been working with or speaking to on a regular basis if you are looking to learn more or if you require further assistance. We\u2019ll also keep you posted on any future enhancements that we may undertake related to helping our clients stay ahead of the curve when it comes to T+1.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 28, 2024, U.S., Canadian, and Mexican equity trades will settle on a T+1 basis. As a software and services provider to the buy-side, we have been working diligently [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":7977,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"image","meta":{"_acf_changed":false,"_stc_notifier_status":"sent","_stc_notifier_sent_time":"2023-09-07 10:00:04","_stc_notifier_request":false,"_stc_notifier_prevent":false,"_stc_subscriber_keywords":"","_stc_subscriber_search_areas":"","content-type":"","footnotes":""},"categories":[100,94,33,43],"tags":[],"class_list":["post-7975","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-blog-articles","category-featured","category-industry-topics-category","category-regulation-and-standards","post_format-post-format-image"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Countdown to T+1: What INDATA Is Doing to 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