ETFs in Europe risk breaching several UCITS rules including cash and overdraft levels following the move to a T+1 settlement cycle in the US.
ETF issuers and authorised participants (APs) will be required to manage the misalignment in the settlement between the fund and the underlying basket – without breaching UCITS rules – touted as one of the biggest challenges of the shortened settlement cycle.
The full article is available at https://www.etfstream.com/articles/etfs-risk-breaching-ucits-rules-under-t-1-misalignment