The UK’s Accelerated Settlement Taskforce is aiming to publish its report and recommendations on shortening the cycle to T+1 in January 2024, a month later than expected, The TRADE’s sister title Global Custodian has learnt. Sources tell Global Custodian that the slight delay due to some sticking points around transition dates and specifying a date.
The initial date of the UK moving to T+1 put forward for discussion was April 2026, but the report is unlikely to specify that as a target due to a lack of consensus on achievability, sources said. The debate around the timeline is coming down to whether to align with the EU or not.
Once the taskforce presents its report, the ultimate decision will come down to HM Treasury as they set the agenda as part of last year’s Edinburgh reforms. In a letter to market participants, Charlie Geffen, chair of the UK Accelerated Settlement Taskforce, has detailed the challenges in finding a consensus on when the UK should make the switch to T+1. He acknowledged that the question is how and when the UK moves to T+1, rather than whether it should do so, and noted that there is wide support for a two-phase approach to T+1.
With the situation complex, a lack of clarity in Europe, a change at the Treasury position and, ultimately, different types of organizations and parties involved in the decision, there is no firm decision across the UK and Europe at present. However, for the former, there is certainly a drive to deliver structural improvements to the market and make it a more efficient and competitive market.