SS&C survey assesses U.S. firms' readiness for T 2
A majority of firms have started their assessment of technology and operations preparedness - 66% and 72% respectively - well in advance of the 2017 implementation of T+2 settlement. According to the survey, those who have not started these assessments largely indicated they would begin in the first half of 2016. A small number of respondents, solely from buy-side firms, noted they would wait until 2017 to assess their operational preparedness.
The survey of 50 executives from buy-side, sell-side, and custodian firms, conducted at the ISITC Annual Forum last month, found:
· Central matching is largely viewed an advantage in a T+2 cycle, particularly among buy-side firms
· Seventy-eight percent believe it is likely or possible the U.S. will move to T+1 within the next decade
· More than half of respondents have or will increase their technology budget to support infrastructure improvements for T+2
· Buy-side firms are least likely to increase their technology budget to support upgrades for T+2 (60% will maintain the same budget)
"Firms are operating in a dynamic environment that requires agility, efficiency, and reliability. The survey findings show a widespread awareness in the industry regarding the need for adequate preparation time and a commitment to maintaining a robust technology infrastructure," said Bob Moitoso, Senior Vice President and General Manager, Financial Markets, SS&C Technologies. "We counsel customers to be proactive in their approach despite the long lead time to prepare, and the survey feedback really resonates with that guidance - if you haven't started, you're already behind."
The top priority amongst all executives surveyed (34%) is to invest in using third party products and solutions to automate the post-trade cycle. Nearly half (48%) of buy-side respondents noted this as their firm's top priority; however, nearly half (47%) of custodians indicated they would prioritize investing in emerging technologies, such as applying Blockchain, to the post-trade cycle. Sell-side respondents reported being more focused on leveraging investments in the front office with FIX to help automate the post-trade cycle.
Methodology
SS&C surveyed 50 executives at the ISITC Annual Forum during the first quarter of 2016 and gathered opinions from respondents within buy-side (50%), sell-side (12%) and custodian (38%) firms. More than three-quarters of the respondents came from firms with over 500 employees. A copy of the full survey results is available here.
About SS&C Technologies
SS&C is a global provider of investment and financial software-enabled services and software for the global financial services industry. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 10,000 financial services organizations, from the world's largest institutions to local firms, manage and account for their investments using SS&C's products and services. These clients manage an aggregate of over \\$44 trillion in assets.
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