Meeting the challenges of T+1

Since May 2024, the US and Canada have required securities settlement on T+1.
See how Duco can help you meet the challenging timelines.

The move to T+1 impacts 40% of the global securities market (SIFMA Quarterly Report, April 2023) and means that most firms have to change everything from batch processing settlements to managing securities depot and cash transactions.

While the move to T+1 will likely reduce risk in the trade settlement process, it adds complexity and (potentially) cost. You might think you can automate your way out of it. But automating processes with bad data still leaves you with exceptions that you need to manage on T+0 to meet the new timelines.

Agile data, not just automated processes

Maintaining existing processes has likely been challenging – if not impossible – especially with clients in other time zones. Exceptions will need to be managed on T+0 so overnight batch runs, investigations and even intercompany processes need to change.

Without a fundamental shift to a data-centric approach, firms will struggle to meet deadlines and data requirements. This will likely mean moving to intra-day, proactive exception management.

Challenge

Fundamental shift in processes

Problem

Exceptions will now need to be found and managed on T+0. Overnight batch processes, manual break investigations and workarounds will need to go.

Existing processes across the business – from collateral management to intercompany transactions – will need to accommodate new timelines.

Solution

In Duco you can build and adapt processes quickly as business needs change, without coding or heavy IT involvement. You can trigger intra-day snapshot runs at specific times or as submissions come in, proactively managing exceptions and getting a jump on investigations.

Challenge

Preventing breaks before they happen

Problem

Exceptions take too long to manage. You can try to throw more people at the problem, but it’s costly and likely not to make enough of a difference. Getting to better data will be the key, but how can you prevent breaks before they happen?

Solution

Start with better data. Duco can help you prevent exceptions before they happen. Aggregate data from many sources, validate things like SSIs before trades happen, and push into upstream systems or downstream to reconciliations. You get the right data in one place to get out in front of breaks, without significant added cost.

Challenge

Managing exceptions faster

Problem

Even with data-centric processes and pre-trade validation, breaks will happen and they need to be managed as quickly as possible. But investigations by email aren’t going to cut it.

Solution

Duco’s best-in-class match rates mean you’re filtering out the noise and not wasting time on false breaks. Automated exception workflows help you get to investigations faster with rule-based automated labelling and assignments to cut investigation times significantly.

T+1 settlement solution

Duco offers an accelerated solution for T+1 settlement that combines the expertise of our professional services team with our robust platform capabilities.

Health check

Operating model diagnostic

  • Get clarity on business architecture
  • Map systems, data flows, processes and control points
  • Uncover gaps, risk areas and opportunities for control improvements

Scope & build

Construct agile operations

  • Validate, transform and enrich data
  • Build intraday reconciliations
  • Custom workflows and automated exception management

Assurance controls

Embed target operating model

  • Deploy global controls
  • Increase visibility with operational dashboards
  • Auditable and transparent controls

Getting to the right data. Fast.

The Duco platform is the only choice when you need to respond fast, stay in control of your data, create transparency and future-proof your operations.

Agile compliance

Get better data from the start and meet the compressing timelines of T+1 requirements with ease. From reference data validation to exception workflow automation the Duco platform will keep you one step ahead of T+1.

Reduce risk

Ensure the integrity an accuracy of your data and strip out manual processes to minimise risk while maximising speed.

Hassle-free

From our no-code Natural Rule Language to the Duco Alpha machine learning engine, our solution is designed to be user-friendly in every way, from setup to documentation.

Always ready

Our platform is data agnostic and easily connects to both upstream and downstream systems. Whether it’s the regulation that evolves or your tech stack, Duco’s data quality solution comes with flexibility baked in to keep you future-proofed.

Seeing is believing

Book a 30 minute demo to see Duco in action and discover
a faster, smarter way to manage your data.