Citi Securities Services Evolution 2025

20 | Securities Services Evolution 2025 T+1 in North American one year on “The world doesn’t end on T+1 weekend. The world will continue to evolve – and so this is not just a survival exercise.” Giovanni Sabatini, EU T+1 Industry Committee After a full year of live T+1 settlements inNorthAmerica, 48%of respondents are still runningprojects in 2025 to optimize their operations for North American T+1 (Figure 8). With 27%of respondents (Figure 9) still experiencing significant impacts from the North Americanmigrations (in 2024), the full transition journey to shortened settlement cycles clearly extends well beyond transition date. Whilst these figures are broadly consistent with industry expectations prior to the T+1 2024 transitions, they clearly underline the multiple phases of T+1 preparation that span a three to four year cycle. Client and counterparty preparations dominate efforts prior to transition, as all client-related risks are scoped andmanaged. Then comes testing and go live. Figure 8: US T+1 project activity: one year on When two become one – EU and UK T+1 is one project “Global investors only see one European market – and so T+1 is an opportunity to reconnect European and UK communities.” Giovanni Sabatini, EU T+1 Industry Committee Unsurprisingly, the industry finds minimal variance between project priorities in the UK and Europe. Both market plans focus heavily on enabling industry automation and settlement efficiency; and both set out plans for greater use of CSD functionalities (including increased standardization of SSIs and settlement instruction formats); and both provide greater clarity on deadlines for stock loan recalls. These factors are increasingly becoming common standards for T+1 plans around the world. Inevitably slight differences are beginning to present themselves at the market infrastructure level – and need specific attention by firms in and outside of Europe as they prepare for October 2027. T2S and Euroclear’s CREST daily settlement timetables differ as do timings of allocation and confirmation deadlines. Europe’s report also includes a deeper focus on clearing processes and corporate actions that is not seen in the UK T+1 Code of Conduct, highlighting the value of ‘third-mover advantage’ (i.e. writing implementation plans after the North American and UK plans have been published). Question: What types of project activity do you have planned in 2025/2026 to support T+1 processing in different markets? Expressed as: % of respondents by location indicating active US T+1 projects yoy. 2023 2025 2024 T+1 Transitions 97% 89% 84% 83% 81% 76% 48% 42% 38% 35% 93% 91% 88% 83% 82% APAC Europe Latin America North America Global Average