State Street Global Advisors (SSGA) has shortened the settlement times on dozens of ETFs in preparation for the move to a T+1 cycle in the US.
Overall, 42 ETFs with significant exposure to US, Canadian and Mexican equities will see their creation and redemption settlement cycles reduced from two days to one.
It comes as the US prepares to move from a T+2 to a T+1 settlement cycle later this month, a move expected to have a far-reaching impact on the European ETF market.
Products such as the SPDR S&P 500 UCITS ETF (SPY5) and the SPDR S&P U.S. Dividend Aristocrat UCITS ETF (USDV) will be impacted while global exposures such as the SPDR MSCI World UCITS ETF (SWRD) will also see their cycle change.
With Europe remaining on a T+2 cycle, asset managers in Europe have been rushing to prepare for the move, particularly with concerns around ETFs breaching UCITS funding rules.
ETFs risk breaching…
