The Risk Management Association and KPMG released a report on preparing for the upcoming settlement cycle change, focused on the securities lending community including lenders, lending agents, borrowers, beneficial owners, custodians, and other stakeholders.
With an accelerated settlement window comes numerous material changes to the settlement process that pose technological, operational, and legal considerations. Securities lending will be impacted, and modifications to processes and technology will be necessary to avoid a potential increase in settlement fails.
Firms will have to focus on accelerating several activities, such as sell communication, recalls, and position sourcing, while also reducing the time allowed to settle transactions.
