SS&C Blog

BLOGS. October 16, 2023

The Importance of Enhanced Trade Communication in a T+1 Environment

Hedge funds and investment managers have historically relied on end-of-the-day independent batch processing for sending trades to prime brokers (PB) and custodians, with exceptions being dealt with the following day. Fixing the issues typically requires the investment manager to either cancel and reinstruct the trade or amend the instructions directly at the PB. In a recent SS&C survey of prime brokers and custodians, the feedback provided was that firms would be pushing their clients away from any non-systematic trade communication. With the upcoming move to a T+1 settlement cycle, there is a need to modernize and streamline the trade communication workflow to reduce exceptions and ultimately limit settlement fails.