A new report from the Tower Group claims an industrywide move to one-day securities trading would not be worth the effort. "It would not be in the industrys interest (or in the interest of individual trade participants) to adopt T+1, the Tower report said. Arguments favoring such a shift "do not justify the negative impact it would have on industry participants and "would force them to alter their IT/operations priorities in an already challenging economic and industry environment. The belief that T+1 would reduce risk in the financial system "is based on shaky ground and has not been empirically proven, according to the report.
The Securities Industry Associations board of trustees is expected to take some action on the future of T+1 on Thursday. An SIA spokesman said the association would issue a statement on the fate of T+1 after the meeting.