AccessFintech is working with BNY Mellon to bring a joint solution addressing foreign exchange (FX) workflow challenges ahead of T+1 settlement scheduled to go live in North America this month.
The shift to T+1 is expected to pose significant challenges for participants, with ample coverage surrounding project increases in fails rates and pressures for international participants linked to misalignment.
As a result, an anticipated impact of these challenges is increased capital constraints due to higher fail rates and operating costs.
Funding and FX requirements are expected to be a more complicated challenge, especially for international brokers and investors operating across different settlement jurisdictions and time zones.
Read more: T+1 settlement: The seismic post-trade change impacting the trading desk
“BNY Mellon has the foresight to help clients across this challenging time in FX settlement,” said Roy Saadon, chief executive and co-founder at AccessFintech.
“Together, we can achieve T+1 settlement by collaborating as a unified ecosystem.”
BNY Mellon and AccessFintech are collaborating to address the expected challenges on the shift to T+1, providing clarity on the ‘predicted to settle’ status of securities trades.
AccessFintech’s clients will be able to instruct BNY Mellon to broker FX transactions based on these ‘predicted to settle’ insights before the end of the US trading day, helping enable the necessary liquidity for international clients trading US securities.
“At BNY Mellon, we are laser focused on developing solutions that support our clients’ investment performance and success,” said Jason Vitale, head of global markets trading at BNY Mellon.
“Our collaboration with AccessFintech will provide clients the ability to leverage our recently launched Universal FX platform to fund their T+1 settlement activity in an efficient and transparent manner.”