On Wednesday (September 27), the upcoming transformation of US stock trading settlement is inconsistent to bring unexpected shock waves to the global foreign exchange market with a daily transaction value of about 7.5 trillion US dollars.
The currency departments of major financial institutions, including banks, brokers and investment companies, are being prepared by half to one day for the world's largest stock market.
This transformation will be held in May next year, which will cause the US stock market to be disconnected from the foreign exchange market, because transactions in foreign exchange markets usually take two days to complete.This means that many overseas institutions trying to buy US assets will need to obtain US dollars in advance to ensure that they can settle, otherwise they will face a desperate situation of funding.
This change has created a potential key moment for the global currency market, that is, it may re -arrange the established trading day.After the new system takes effect, the opening time of the New York foreign exchange trading counter is prolonged, the increase in the sharp transaction volume in Asia in the morning, and the movement of employees out of Europe are all side effects that the new system may occur.
For many industry insiders, the acceleration of the implementation of US stock transactions is the horn of accelerating the development of the currency market itself.They believe that technological progress means that the two -day settlement of foreign exchange should also become history.
