According to the Financial Times, research from Citigroup (C.N)'s securities services division shows that many asset management companies are having to fill a significant funding gap after the US stock market historically transitioned to a shorter settlement period earlier this year, causing a misalignment with Europe. The report states that every aspect of the asset management business has been affected more than originally expected, including financing, employee numbers, securities lending, etc. The division further adds, "The actual transition seems to have been going on for three months, and although the initial operation went smoothly, the company is seeing more long-term negative effects." For example, the financing costs of asset management companies have been continuously deteriorating, with 46% of respondents stating that they have to fill a "significant funding gap during the settlement process" due to their navigation between the T+1 system and the T+2 systems of the European Union and the United Kingdom. As many asset management companies and institutional investors paid relatively little attention to T+1 during the preparation phase, the depth and impact of these funding challenges seem to have caught many by surprise.