Convincing Your Team That Technology Is Essential for T+1 and Beyond

The transition to T+1 settlement—the requirement for most U.S. securities trades to settle within one business day instead of two—marks one of the most significant operational changes in recent decades. While the move is designed to reduce counterparty risk and align markets with global best practices, it also compresses already tight timelines for trade affirmation, reconciliation, and settlement. For technology providers, fintech firms, IT teams, and data professionals, the challenge lies not only in building solutions but also in convincing internal stakeholders that adopting new technology is no longer optional.

Why Technology Is Central to T+1

The accelerated settlement cycle leaves little margin for manual processes. According to the Depository Trust & Clearing Corporation (DTCC), even minor delays in affirming trades can create settlement failures under a T+1 regime. Functions such as trade matching, confirmation, collateral movement, and reconciliations must now operate with higher speed and precision. Manual workarounds that may have been tolerable under T+2 are no longer sustainable.

Moreover, regulators such as the U.S. Securities and Exchange Commission (SEC) have emphasized that firms must demonstrate readiness for T+1 by implementing system and process changes to reduce operational risk. This positions technology as the primary enabler of compliance, resilience, and efficiency.

Show the Regulatory Imperative
Frame T+1 not as a “technology project” but as a regulatory requirement. Share official communications from the SEC, DTCC, and other bodies that explicitly call out the need for updated systems and faster processing. Demonstrating the compliance angle reinforces urgency.

Highlight Operational Risk
Use concrete examples to show how manual errors—such as delayed affirmations or mismatched data—can directly lead to failed settlements. Emphasize that under T+1, the cost of operational risk increases, as firms have less time to resolve issues.

Demonstrate the Business Case
Technology adoption isn’t just about meeting a deadline. Automated trade matching, real-time data reconciliation, and integrated reporting can also reduce costs, free up staff time, and improve scalability. Present technology as both a defensive and offensive investment.

Use Industry Benchmarks
Reference industry peers and benchmarks. Organizations that have adopted cloud-based post-trade processing, advanced reconciliation tools, or AI-driven exception management are already setting the standard for efficiency. Position lagging behind as a reputational and competitive risk.

Emphasize Future-Readiness
T+1 is not the end state. Market discussions around T+0 settlement and the integration of digital assets into mainstream infrastructure signal that further compression of timelines is possible. Framing technology adoption as a way to future-proof the organization helps win long-term support.


For technology providers, the case for technology in the age of T+1 is clear: manual processes cannot deliver the speed, accuracy, and resilience required by the new settlement cycle. The role of these teams is not only to build and implement solutions but also to articulate to their organizations why these investments are critical. By aligning with regulatory mandates, highlighting operational risks, and pointing to both business value and industry benchmarks, technology leaders can secure the buy-in necessary to navigate T+1—and prepare for what comes next.

As the Trade Association for Financial Professionals and Administrators, we continue to provide resources, forums, and insights to support members in navigating this transformation and in building the operational infrastructure for the future of financial markets.