Beyond Faster (T+1) Trade Settlements: The Hidden Costs of Optimization
05/29/24 • 27 min
Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.
- Why countries are moving to T+1 settlement from T+2 for security trades
- What will it take for secur
- How BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium network
- How optimization works and what are the tradeoffs
- How we can use satisficing and rules of thumb in order to cope with the complexity of the world
Sponsors
Monarch Money – Get an extended 30-day free trial
Our Premium Products
Show Notes
About the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—Bloomberg
SEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SEC
Speedier Wall Street Trades Are Putting Global Finance On Edge by Greg Ritchie—Bloomberg
Optimal Illusions: The False Promise of Optimization by Coco Krumme
Related Episodes
457: AI’s Fork in the Road: Societal Bliss or Existential Threat
329: Meme Stocks, GameStop, Short Squeezes, and Bubbles
228: How Tokenization Will Radically Change Investing
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.
- Why countries are moving to T+1 settlement from T+2 for security trades
- What will it take for secur
- How BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium network
- How optimization works and what are the tradeoffs
- How we can use satisficing and rules of thumb in order to cope with the complexity of the world
Sponsors
Monarch Money – Get an extended 30-day free trial
Our Premium Products
Show Notes
About the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—Bloomberg
SEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SEC
Speedier Wall Street Trades Are Putting Global Finance On Edge by Greg Ritchie—Bloomberg
Optimal Illusions: The False Promise of Optimization by Coco Krumme
Related Episodes
457: AI’s Fork in the Road: Societal Bliss or Existential Threat
329: Meme Stocks, GameStop, Short Squeezes, and Bubbles
228: How Tokenization Will Radically Change Investing
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Previous Episode
National Debt Masterclass Finale - What To Do
In part three of our national debt masterclass, we share a simple debt dynamics formula we can monitor to help guide our investment choices.
Topics covered include:
- How much has the national debt grown over the past fifties years, and what are the underlying drivers
- How the budget deficit, interest rates, and economic growth determine the level and growth in the national debt
- Under what circumstances will the U.S. default on its debt
- How should we invest to protect ourselves from the uncertainties of the national debt situation
Sponsors
Our Premium Products
Show Notes
Jerome Powell: Full 2024 60 Minutes interview transcript—CBS News
Yellen says she disagrees with Moody's outlook on US debt by Ann Saphir and David Lawder—Reuters
IMF Steps Up Its Warning to US Over Spending and Ballooning Debt by Christopher Condon—Bloomberg
WHEN DOES FEDERAL DEBT REACH UNSUSTAINABLE LEVELS?—Penn Wharton
The Long-Term Budget Outlook: 2024 to 2054—Congressional Budget Office
PUBLIC DEBT AND LOW INTEREST RATES by Olivier J. Blanchard—NBER
Term Premium on a 10 Year Zero Coupon Bond—FRED
Instantaneous Forward Term Premium 10 Years Hence—FRED
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Next Episode
How to Navigate the Crippling Home Insurance Crisis
Why are homeowners seeing home insurance premiums increases of up to 70%, as David has? What can you do if your insurer drops you, you get a huge premium increase, or you can no longer afford coverage?
Topics covered include:
- What are the primary drivers of home insurance price increases
- Why these increases don't show up in the U.S. consumer price index
- How the reinsurance market works and why reinsurers are passing on 50% premium increases to property and casualty insurers.
- What percentage of home insurers self-insure
- What else can homeowners do
Sponsors
Delete Me – Use code David20 to get 20% off
Insiders Guide Email Newsletter
Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter
Our Premium Products
Show Notes
The crippling home insurance crisis hitting America by Rana Forhoohar—The Financial Times
The Hidden Driver of Soaring Home Insurance Costs by Jean Eaglesham—The Wall Street Journal
When Disaster Strikes: Preparing for Climate Change by Seán Nolan and Krishna Srinivasan—IMF Blog
Homeowners Perception of Weather Risks 2023 Q2 Consumer Survey—Insurance Information Institute
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/money-for-the-rest-of-us-82316/beyond-faster-t1-trade-settlements-the-hidden-costs-of-optimization-52858151"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to beyond faster (t+1) trade settlements: the hidden costs of optimization on goodpods" style="width: 225px" /> </a>
Copy