What Are the Implications of T+0 Settlement in Cryptocurrency Markets for Institutional Traders?
T+0 settlement, or real-time settlement, means trades are finalized instantly. This dramatically reduces settlement risk and the need for large pre-funding of margin, improving capital velocity.
However, it also requires institutions to have highly efficient, automated pre-trade checking and post-trade processing systems to manage liquidity and compliance instantly. Operational failures become more costly.