Beyond Faster (T+1) Trade Settlements: The Hidden Costs of Optimization

Money For the Rest of Us

Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.

• Why countries are moving to T+1 settlement from T+2 for security trades
• What will it take for secur
• How BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium network
• How optimization works and what are the tradeoffs
• How we can use satisficing and rules of thumb in order to cope with the complexity of the world

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Show Notes

About the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—Bloomberg

SEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SEC

What faster trading cycles will mean for US markets by Jennifer Hughes and Harriet Clarfelt—The Financial Times

Speedier Wall Street Trades Are Putting Global Finance On Edge by Greg Ritchie—Bloomberg

BlackRock closes in on crown of world’s largest bitcoin fund by Will Schmitt and Brooke Masters—The Financial Times

Optimal Illusions: The False Promise of Optimization by Coco Krumme

Financial Statement Analysis with Large Language Models by Alex G. Kim, Maximilian Muhn, and Valeri V. Nikolaev—The University of Chicago

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