Lessons from T+1 settlement: Risk mitigation and future implications
Abstract
The transition to a T+1 settlement cycle marks a significant milestone in the evolution of global securities markets. This paper examines the key operational, technological and strategic challenges encountered during implementing T+1 and the lessons learned by early adopters, particularly in the US and Canada. The accelerated settlement cycle, designed to reduce counterparty risk and enhance market efficiency, demands a fundamental rethinking of post-trade workflows, requiring companies to adopt automation, streamline processes and foster cross-industry collaboration. The paper also highlights the implications of compressed timelines for cross-border transactions and the critical role of regulatory frameworks in ensuring a smooth transition. In addition, the analysis explores the readiness of other jurisdictions, including the UK and Europe, which are planning transitions to T+1 by late 2027. Drawing on real-world examples and industry insights, this paper provides actionable guidance for companies navigating T+1 while considering the broader implications for future settlement cycles such as T+0. Additionally, the paper assesses how the takeaways from T+1 can shape the transition to T+0, particularly in automation, liquidity management and risk mitigation. This article is also included in The Business & Management Collection which can be accessed at https://hstalks. com/business/.
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Author's Biography
David Petiteville is a seasoned financial services executive with over 27 years’ experience in global custody, securities settlement and regulatory solutions. As Director of Global Custody and Head of Regulatory Solutions at RBC Investor Services (RBCIS) in Toronto, he led the strategic development of custody products, ensuring they align with evolving market practices and regulatory demands. He oversaw safekeeping, settlement, asset servicing and custody taxation, tailoring solutions to meet the complexities of global markets. A key figure in Canada’s transition to T+1 settlement, David worked closely with industry stakeholders to drive operational readiness and ensure compliance with the new settlement framework. He also played a pivotal role in advancing product innovation, digitisation and scalability, enhancing RBCIS’s custody offering and delivering superior client experiences. Before joining RBC in 2006, David spent 11 years at PricewaterhouseCoopers (PwC) Luxembourg, advising financial institutions on business intelligence, risk management, regulatory compliance and digital transformation. His deep industry knowledge and analytical expertise have positioned him as a trusted leader in post-trade services and market infrastructure evolution. David holds an Executive Master’s in management from the Louvain School of Management (Belgium) and two Master’s degrees in mathematics from the University of Louis Pasteur (France). He is also a Financial Times-certified Non-Executive Director (Level 7 Diploma, Pearson Business School, UK).
