Challenges in Moving to T+1 Settlement

Moving to T+1 settlement poses challenges in the financial industry. One major issue is the need for efficient block trade reallocating processes by 9 PM, as only about 65-67% of trades currently get fully allocated by that time, potentially leading to failed trades. Another challenge involves short covering, where firms need to retrieve stocks lent out quickly. Additionally, cross-border trades face timing issues due to the lag between securities and money movements.