In terms of cash management, asset managers will face difficulties to cope with the liquidity gap between the investment date in US securities (T+1) and the fund’s settlement date (typically T+3), combined with FX funding in particular.
On 15 December 2023, ALFI responded to the ESMA call for evidence (CfE) on the move to T+1/T+0.
A move to T+1 does not generate any direct benefits for asset managers.
ALFI requests forbearance from the policy makers as regards the likely crossing of the UCITS Directive cash/borrowing limits, specifically due to the T+1 impacts.
The EU would need a minimum of four years after the US go-live to potentially move to T+1.
View the ALFI response, and its annexes.
ALFI
© ALFI - Association of the Luxembourg Fund Industry
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