Next wave of agility: AI and T+1

Industry insights: T+1 transition brings minor system issues; European lenders hit with climate related fines

• On the first day of T+1 settlement, DTCC encountered minor system issues within its DTC and NSCC night cycle processing, described as expected teething issues by sources. Despite these issues, transactions met DTCC settlement deadlines and the delays were resolved. The Canadian exchange TMX also faced minor system issues during its T+1 transition, which were promptly addressed without impacting key functions.??
• Further thoughts on T+1 as Reuters highlights concerns around the implementation of T+1 trade settlement regulations. The article includes a link to the Gresham Tech blog post on the consequences of failed trades.?
• The European market is predicting a June interest rate cut by the European Central Bank (ECB). This news follows the ECB applying climate pressures on lenders issuing first-ever fines on banks for climate failures of be up to 5% of daily revenue.
• Buy now pay later (BNPL) lenders to be treated in the same way as credit card providers the US Consumer Financial Protection Bureau has declared. The ruling means that BNPL providers must give consumers some key legal protections and rights that apply to conventional credit cards.

What we hear from our Clients:?

• Integrated solutions allow more agility: Clients are seeking more integrated solutions? that help to streamline workflows and facilitate customization. Developing collaborative projects has provided more agility and flexibility to respond to changing market dynamics and regulation.
• Operations made simple: Today teams require simplified operational processes, intuitive support and automated solutions. Clients are looking to minimize breaks, constantly improve match rates and free up valuable resources for strategic initiatives.
• External and internal support models: Firms are looking for the ability to choose the right mix of in-house expertise and world-class support teams to ensure they can scale operations quickly and re-prioritize focus when serious issues arise.

What's new with Gresham:?

• Julian Trostinsky spoke to FTF News on how our clients are using the power of AI to streamline operational efficiency and build organizational resilience amid industry developments.?
• In her latest blog post, Jenn McMackin shares her thoughts on regulatory compliance in data reconciliation. Jenn addresses the business critical issues clean data sets provide to making sound business decisions and for maintaining integrity of internal processes. Jenn maintains that getting it wrong can lead to substantial penalties and restrictions for financial services to effectively operate.?
• The Fintech Times spoke to Neil Vernon on what a successful trial of distributed ledger technology (DLT) in Central Bank money settlements by the Eurosystems would mean for the future of the fintech industry.?
• We recognized for innovation at the Fintech Awards London and we are shortlisted for ‘Best Regulatory Reporting Solution’ and ‘Best Reconciliation Solution’ in the 2024 Financial Technologies Forum (FTF) News Technology Innovation Awards, which take place later this month.?