Row breaks out over cause of FX settlement fails
One European bank blames T+1 for a 50% jump in FX fails, but industry groups dispute the claims
A surprising disagreement has broken out between a large European bank and industry groups tasked with readying the market for the migration to next-day (T+1) settlement in Europe and the UK in 2027.
The European bank claims to have seen a 50% increase in the rate and size of foreign exchange settlement fails over the past year, which it blames on the move to T+1 settlement in North America on May 28, 2024.
“The shift to T+1 settlement in the US and Canada has produced an increase in FX settlement
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