LONDON--(BUSINESS WIRE)--A Citi survey shows market participants around the world increasingly believe that shorter settlement cycles will become reality.

The second edition of Citi�s �Securities Services Evolution� whitepaper shows 51% of market participants expect the prevailing settlement timeframe for equities to be T+1 by 2026 � up seven points from last year�s survey. This sentiment is supported by several key markets moving towards a T+1 settlement cycle recently, including the United States, Canada and India.

Okan Pekin, Global Head of Securities Services at Citi, said: �We are seeing a greater sense of momentum and purpose in all developments across the industry, in particular the determination to move to a T+1 settlement cycle. Delivering these changes will be no small feat but in due course offer the prospect of very substantial cost savings and efficiencies.�

Citi�s whitepaper includes quantitative and qualitative data gathered from 12 financial market infrastructures (FMIs) and almost 300 market participants from banks, broker-dealers, asset managers, custodians and institutional investors around the world. Collectively, these insights continue to provide a rare, holistic view of ongoing developments across the global securities market ecosystem.

Some new findings from this year�s whitepaper include:

• 88% of market participants stated that their organizations are either actively participating in, or exploring use cases for digital assets, blockchain or distributed ledger technology (DLT).
• 54% said a DLT-based market infrastructure could cut post-trade processing costs by 10-30%.
• 79% believe that atomic settlement is achievable in less than 10 years.
• 92% see the value and benefits of tokenization to market liquidity, and variety of tradeable assets.

FMIs and market participants continue to have opposed views on a number of topics. For example, FMIs see risk reduction as a major benefit of reducing settlement cycles, which will in turn enable lower margin requirements and the release of capital. In contrast, only 17% of market participants survey felt the same way.

On the other hand, FMIs and market participants have become more closely aligned on their views regarding DLT�s role in facilitating a successful transition to T+1/T+0. FMIs believe that while DLT has a role to play, it is not an essential requirement. Only 21% of market participants (down vs 40% last year) think DLT will be core to a shortened settlement cycle.

With over $25 trillion* of assets under custody and administration and with an industry-leading proprietary network spanning over 60 markets, Citi Securities Services provides clients with extensive on-the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients� needs.

*As of 6/30/2002, represents totals assets under custody, administration and trust.

Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

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Contacts

Media:
Rekha Jogia-Soni

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