U.S. Stock Settlement Rule Changes Challenge Global Markets
New SEC regulations shorten settlement windows, prompting adaptations in Asia and calls for real-time solutions.
- New SEC rules require U.S. stock trades to settle within one day, down from two days.
- Asian investors must adjust to tighter timelines, potentially increasing costs and risks.
- Automation and pre-funding are among strategies being adopted to meet the new requirements.
- Experts suggest moving towards real-time settlement, leveraging blockchain and standardization.
- The changes aim to reduce counterparty risks but may create liquidity challenges in early hours.