3 ms·
T+2 is an artifact from the days where there was paper trading and everything was done via open outcry. There's no technical reason it can't be done much faste
by walkedaway 6y ago
T+2 is an artifact from the days where there was paper trading and everything was done via open outcry. There's no technical reason it can't be done much faster. ATM transactions are atomic within 60 seconds. Credit cards are faster than that writing to their ledgers. And yes, while behind the scenes those transactions don't settle until next day via bank or credit card processor, there's no technical reason that they can't be done in near real-time.
In the US the reason we still have T+2 is that it benefits the financial institutions to do so at the expense of the individual. One of the many reasons I have zero empathy for the industry.
- Jommi 6y agoHowabout KYC,Security,fixing errors? You're really saying that there are no downsides in doing this faster?
- walkedaway 6y ago1. KYC done ahead of time. 2. Security? How is doing it faster less secure? If anything it would be more secure because of the reduced threat area, right? 3. Errors should not happen in an electronic system. That's a bug, not an error with the parties involved. If we can do T+3 in an era with zero computing power, it's obvious we can do much faster in the year 2021. Again, we do this in other areas where consumers demand it. Yes, I'm really saying there are no downsides. Can you name one?