Beyond Faster (T+1) Trade Settlements: The Hidden Costs of Optimization
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Shownotes Transcript
Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.
- Why countries are moving to T+1 settlement from T+2 for security trades
- What will it take for secur
- How BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium network
- How optimization works and what are the tradeoffs
- How we can use satisficing and rules of thumb in order to cope with the complexity of the world
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Show Notes
About the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—Bloomberg)
SEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SEC)
Speedier Wall Street Trades Are Putting Global Finance On Edge by Greg Ritchie—Bloomberg)
Optimal Illusions: The False Promise of Optimization by Coco Krumme)
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