"Wall Street Braces for Faster T+1 Settlement Rule Impact"
The U.S. is shortening its stock settlement window from two days to one starting May 28, which will force Asian money managers to secure funds during low liquidity hours, potentially causing market volatility. This change aims to reduce counterparty risks but may disrupt forex flows and increase transaction costs. Financial institutions are preparing by increasing staffing, automation, and cash buffers, though the shift highlights the inflexibility of global market infrastructure.