Citi Securities Services Evolution 2025

34 | Securities Services Evolution 2025 2025 Around the world: what does this all mean for your region? North America T+1: the in-between year A year after accelerating settlements across the region, T+1 is still seen as the most impactful market dynamic for respondents in North America – as the region straddles two key phases of the global project . 2024’s transitions (which were single- currency and single-time zone for most North Americans) look to have been comparatively straight forward. Today only 23% of North American respondents feel ‘significantly impacted’ by the 2024 T+1 transitions, compared with 28% of respondents in Europe. But T+1 in UK, Europe and other markets will be a very different experience and preparations are already taking place. At a project level, North American firms continue to optimize their now-accelerated domestic settlements, with a particular focus on internal process automation (36%). In order to prepare for cross-border, cross- currency, multi-time-zone settlements in 2027, the same number of respondents are now also working on the new funding mechanisms and cash forecasting processes that will underpin their T+1 models for global markets. Faced with the prospect of running T+1 in a region with over 30 CSDs in two years, it is also not surprising that 27% of North American respondents are reviewing their agent bank and CSD relationships specifically in Europe. Having take their first steps into T+1, North American firms are clearly beginning to prepare for much more market complexity in 2027 and beyond – and we should expect these levels of project activity to rise again in 2026. Accelerated settlements Settlement efficiency Replacement of FMI legacy technology platforms Adoption of Generative AI* Adoption of digital assets Increased shareholder participation and governance Automation of asset servicing Mandatory fixed income clearing Resiliency Figure 19: Most significant changes in the North American post-trade space today Expressed as: % of respondents in North America citing each change, excluding others. *New category in 2025. 29% 22% 24% 11% 20% 23% 10% 7% 15% 6% 13% 13% 10% 7% 9% 12% 6% 7% 5% 5% 7% 2023 2024 2025