In the rapidly evolving financial landscape, T+1 settlement is not just a regulatory adjustment, it's a bold step towards reimagining the future of post-trade operations for a real-time economy. As an entrepreneur with roots in both Europe and deep technology, I, Violetta Bonenkamp, view this transition through a unique lens, one where innovation, efficiency, and resilience intersect. Today’s article will explore why T+1 is a game-changer, shedding light on automation, regulatory shifts, and future-proof strategies, while providing actionable advice for business leaders who want to thrive in this new era.
Introduction: What is T+1 and Why Does it Matter?
T+1 settlement refers to compressing the time it takes to finalize a trade to just one business day after execution. While this may sound like a bureaucratic update, its implications are far-reaching. It’s not just about faster transactions; it’s about preparing the ground for real-time processing across all financial operations.
Here’s the kicker: shorter settlement cycles reduce counterparty risk, free up liquidity faster, and pave the way for greater transparency. For startups, financial service providers, and any business dealing with securities, understanding T+1 isn’t optional, it’s essential. According to a report by Citi, T+1 is also a precursor to adopting fully real-time settlements (T+0), a futuristic model expected to become the global standard.
Main Part
How T+1 is Redefining Post-Trade Operations
As the financial markets transition into T+1, businesses are facing both opportunities and challenges. Key trends driving the change include:
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Leveraging AI and Automation
The speed demanded by T+1 necessitates eliminating manual processes. AI is playing a pivotal role here, from predictive analytics to inventory management. For example, innovative platforms like Broadridge Financial Solutions are integrating AI to optimize settlement pipelines. AI also reduces the likelihood of settlement fails while enhancing operational resilience. -
Adoption of Digital Assets
With financial instruments evolving to include tokenized securities and blockchain-enabled trade settlements, digital transformation is vital. According to Deloitte’s T+1 report, markets will need to focus on real-time data orchestration across global platforms. -
Global Regulatory Compliance
Nations pushing for shorter settlement cycles, like the U.S., which completed its T+1 transition in 2024, ensure that businesses must comply with new rules to avoid penalties. Entrepreneurs especially must proactively stay ahead of imminent regulations such as Europe’s October 2027 migration deadline.
The Entrepreneur’s Guide to Thriving in a T+1 World
No matter if you're a startup founder or an established business owner, these actionable steps will help you remain competitive:
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Invest in Automation Tools
Replace spreadsheets and fragmented systems with solutions like Gresham Technologies. These platforms enable real-time trade matching and reconciliation, ensuring post-trade processes aren’t bottlenecked. -
Embrace Predictive Analytics
Use AI-powered platforms to forecast failures and optimize workflows. Predictive models are instrumental in removing inefficiencies caused by historic batch processes. -
Be Collaborative
Partner with forward-thinking tech providers and financial institutions. Collaboration across your network (from technology suppliers to custodians) ensures seamless implementation. -
Stay Educated
Learn from real-world case studies of successful T+1 transitions. Institutions like DTCC regularly publish insights that can inform strategy.
Most Common Mistakes to Avoid
Despite the clear advantages, transitioning to T+1 comes with pitfalls:
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Overlooking Infrastructure Scalability
Many firms assume their existing systems can handle T+1 speeds. Avoid shortcuts and invest in platforms designed for high-speed data orchestration. -
Ignoring Global Trends
Entrepreneurs often focus solely on local markets. Big mistake. Follow what’s happening globally (e.g., Asia’s upcoming adoption of T+1). -
Underestimating Staff Training Needs
Employees must adapt to faster settlement realities. Prioritize knowledge-building to ensure your team operates effectively.
Deep Insights: Why Entrepreneurs Should Care about T+1
From my experience as a serial entrepreneur, regulatory-driven changes often integrate seamlessly with broader technological shifts. With T+1, the move is not just regulatory; it symbolizes an industry-wide shift requiring adaptability. Startups, in particular, shine under these conditions because they can pivot faster than legacy systems dependent on outdated workflows. Here’s what sets successful firms apart:
- Agility: Startups that adopt automation tools early can achieve a competitive edge.
- Strategic Vision: Entrepreneurs capable of visualizing post-T+1 changes (like tokenized real-time settlements) will be industry leaders.
- Networking Focus: Strong connections with local ecosystems and global players will streamline compliance and adoption.
Conclusion: Reimagining Post-Trade for a Real-Time Future
The transition to T+1 isn’t just another regulatory hoop businesses need to jump through; it’s an opportunity to rethink operations entirely. By implementing automation tools, leveraging predictive analytics, adopting digital assets, and embracing global standards, entrepreneurs and businesses can set themselves up for long-term success. This is just the beginning, real-time settlement (T+0) isn’t far off.
Think of T+1 as your trial run for future-proofing your enterprise. So, start small but think big, invest in evolving processes and technologies to prepare for a seismic shift. Whether you’re in finance, SaaS, or deep tech, the lessons here have universal applications. Forward-thinking leaders are unlikely to ‘keep pace’ with T+1; instead, they’ll drive the future that comes after it.
To dive deeper into operational strategies for T+1 compliance, check out insights from the Financial Conduct Authority or explore tools from automation-driven providers like Confluent.
FAQ
1. What is T+1 settlement, and why does it matter?
T+1 settlement refers to the compression of the trade settlement cycle to one business day after the trade is executed. This change reduces counterparty risk, accelerates liquidity, and prepares markets for real-time processing. Learn about T+1 in detail
2. How does T+1 improve post-trade operations?
T+1 modernizes operations by requiring faster reconciliations, reducing risks, and moving financial markets closer to real-time processing. Automation and AI are key factors in achieving these improvements. Read more about T+1 transformation
3. What role does AI play in the T+1 transition?
AI is critical for predictive analytics, failure detection, and inventory management, all of which enhance operational resilience and enable real-time post-trade workflows. Learn how AI supports T+1
4. Why should businesses consider automating their post-trade processes?
Automation is necessary under T+1 to eliminate manual processes, reduce errors, and enhance the speed and efficiency of settlements in a compressed time frame. Explore automation tools for post-trade operations
5. What are tokenized securities, and how do they relate to T+1?
Tokenized securities, often tied to blockchain technology, facilitate faster and more efficient trade settlements, making them compatible with T+1 and T+0 models. Understand the importance of tokenized securities
6. When will Europe adopt T+1 settlement?
Europe has set a deadline of October 2027 for the full implementation of T+1 settlement, aligning with global financial markets. Learn more about Europe's T+1 migration
7. What is the relationship between T+1 and T+0 settlement cycles?
T+1 is seen as a step toward transitioning to T+0, which aims to introduce real-time trade settlement as the global gold standard in financial markets. Read more about the vision for T+0 in this Citi report
8. What are the risks for businesses not adapting to T+1?
Firms that fail to implement infrastructure for T+1 may face penalties, inefficient processes, and an inability to compete as real-time processing becomes the norm. Check out insights for T+1 adaptation
9. Why is resilience critical in T+1 implementation?
The switch to T+1 increases pressure on systems to handle high-speed and secure data exchanges. Companies must balance innovation with operational stability. Read more about balancing resilience
10. What lessons can entrepreneurs learn from T+1 transitions?
Successful businesses leverage automation early, remain agile, and build networks with forward-thinking partners to thrive during the transition to T+1 settlements. Explore entrepreneurial insights on T+1
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
