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Trade fails increase following T+1 switch

Fails were up after the introduction of T+1 and the MSCI rebalance

The US moved to a new system of trading settlement on 28 May Mairo Cinquetti/NurPhoto via Getty Images
The US moved to a new system of trading settlement on 28 May Mairo Cinquetti/NurPhoto via Getty Images

Trade fails increased on 31 May following the introduction of T+1 and extra trading brought about by the MSCI rebalance.

According to data from the Depository Trust & Clearing Corporation, the trading fail rate edged up slightly as the industry worked to smooth the transition to T+1 which halved the time it takes for trades to settle from two days to one.

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