March 14, 2022
Dear employee,
Thank you for looking into the framework of settlement and regulations around the permitted time frame of settlement.
To my understanding the regulations around the delay of settlement is a potential source of practices within the financial world which in worst case could be labeled market manipulation, in a mild case it leads to bad information transparency and could mislead investors in their choice to invest in a certain product.
Big institutions have the knowledge and capability to postpone obligations due through current settlement regulations that grants significant delay of settlements. The combination between the current regulations and information asymetry between retail investors and institutions in the financial world creates a non-equal playing field.
I'd like to suggest to harness modern IT technology to aim for T+0 or same-day settlement. This is one of the best ways to quickly level the playing field between institutions and retail investors and make the market fairer through better information.
I'm available for further contact if needed.
With kind regards,
Jim B.