North America T+1 transition in 2024: key findings

How did North America’s move to T+1 really affect workflows, fails and operational cost?

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North America’s T+1 transition was smoother than expected, but pressure remains. These key findings show where fail rates rose by 21%, why more than half of processing now happens overnight and what still needs to change.

Smoother than expected

Transition

T+1's smooth transition was supported by T+0 allocations and affirmations – where firms invested early, the benefits were clear.

Where pre-settlement discipline did not improve, unaffirmed trades fail significantly more often.

Overnight processing shift

Operations

The overnight shift is increasing operational intensity, while a significant share of the T+1 project agenda is still ahead.

Firms that have not completed their automation programmes face a growing backlog as volumes rise.

Next-phase readiness

Outlook

2027 is emerging as the defining year – today's readiness gaps will become tomorrow's execution risks.

Larger firms have helped stabilise fail rates and costs, but smaller participants remain more exposed.

The move to T+1 in North America may have been operationally stable at the point of transition, but the data shows a more complex picture beneath the surface. Firms avoided major disruption, yet new pressures around automation, overnight processing and post-transition workload are now clearer.

How did firms experience the immediate shift to T+1, and where were the real surprises? Which parts of the operating model improved, and where are higher fail rates, cost pressure and incomplete project work still shaping the post-transition environment?

The findings are based on an August 2024 pulse survey of more than 300 market specialists globally, examining how the U.S., Canadian and Mexican transitions to T+1 have reshaped workflows, costs and readiness for the next wave of market change.

Produced in partnership with Depository Trust & Clearing Corporation (DTCC) and TMX Group (TMX), with support from industry associations globally, the research highlights:

30% say T+1 went better than expected, with firms generally viewing the transition positively, supported by T+0 allocations and affirmations

21% higher fail rates for unaffirmed trades, with settlement performance remaining noticeably weaker where pre-settlement discipline has not improved

50%+ of processing now happens overnight: more than half of trade processing has shifted into overnight windows, increasing operational intensity

35% of the agenda is still ahead: a significant share of T+1 project work remains unfinished, particularly for investors

Only one in two is ready for what comes next: many firms are not yet prepared for the next phase of global T+1 transitions, with 2027 emerging as the key year ahead