There is an ongoing debate between the need for automation versus implementing behavioral changes or increasing staffing levels. Some market participants we spoke with for a recent survey suggested that automation should be at the heart of every firm’s strategy with the mantra being “automate, automate, automate”. Others felt that process and behavior change were more important and that firms cannot just automate their way to T+1.
For example, resolving issues like cross-border time zone misalignment is not possible to automate. According to ISITC: “There’s a whole ecosystem that’s involved in these communication processes, and if something breaks, all of them have to be involved in that discussion. The friction that exists is a natural outcome of the cross-border marketplace, of time, and the way the financial market works.”
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