The UK T+1 Accelerated Settlement Task Force (AST) published its implementation plan for the UK’s transition from T+2 to T+1 securities settlement. Financial markets globally are increasingly moving to shorten the settlement cycle from two days after the execution date, to one day after execution, known as a T+1 settlement cycle.
The plan includes a Code of Conduct for market participants, which confirms:
- 11 October 2027 will be the first trading date in UK cash equities for settlement on a T+1 cycle
- A clearly defined scope
- 12 critical operational actions and 26 highly recommended actions
- 5 behavioral commitments including:
- A push for automation in SSIs, corporate actions, and stock lending recalls
- A focus on ‘action this day’, urging firms to begin planning and where practicable, immediate implementation
The implementation plan has the support of the public authorities including government (HMT), Financial Conduct Authority (FCA), and the Bank of England. Primary regulation, UK CSDR, will be amended to reflect that T+1 will be mandatory from 11 October 2027.
Andrew Douglas, chair of the UK T+1 AST, said in a statement: “This is a milestone in the UK’s journey to T+1 settlement and reflects a substantial amount of work and co-operation across the industry. We have a date and a detailed plan for the way ahead. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026. Automation will be a key component of a successful implementation.”
Euroclear is supporting the UK T+1 Accelerated Settlement work with program management and industry engagement support.
In emailed commentary, Val Wotton, managing director and general manager of DTCC Institutional Trade Processing said: “DTCC supports the recommendations set forth in the UK Accelerated Settlement Taskforce (UK AST) UK T+1 Code of Conduct, published today, and the recently issued Financial Markets Standards Board (FMSB) Standard for Sharing of Standard Settlement Instructions (SSI).
“We believe these initiatives are key to driving efficiency, reducing risk, and enhancing transparency in post-trade processes across jurisdictions. In particular, we commend the UK AST’s call for the completion of allocation and confirmation processes no later than 23:59 UK time on trade date (T+0), which is a key enabler for T+1 settlement on all trades. The UK AST also recommends that market participants begin preparing for an accelerated settlement cycle by implementing automated trade solutions to achieve T+1 settlement as soon as possible.
“As observed in the US’ move to T+1 settlement, the automation of post-trade processes, including ensuring the accuracy and immediate availability of SSIs, is critical to achieving T+1 settlement. By aligning with these key recommendations, market participants can better navigate the complexities of accelerated timelines and a rapidly evolving financial market ecosystem, driving greater efficiency and ensuring the continued integrity of financial markets.
“DTCC remains committed to sharing our expertise and advancing industry-wide solutions that help firms achieve greater levels of automation in the post-trade process to meet accelerated settlement timelines, including our CTM and ALERT best practice solutions. At the same time, our expert consultants stand ready to support firms as they consider the impact of T+1 on their operations and develop plans to achieve readiness.”