The UK T+1 Taskforce published its consultative report, “Accelerated Settlement Taskforce, Technical Group – Draft Recommendations Report and Consultation”, outlining recommendations for the implementation of a T+1 settlement cycle in the UK by no later than the end of 2027.
The report makes principal recommendations covering the critical post-trade activities to complete efficiently if the UK’s transition to T+1. They cover the areas of success criteria, settlement, FMIs, static data, corporate actions, securities financing and FX.
“As firms in the US who have not automated seem now to be realizing, the legacy of not automating is increased headcount costs to deal with manual processes and the higher levels of exception management that result from manual processing,” according to the report.
The report also makes additional recommendations, which look at environmental issues that need to be addressed if the UK is to maximize the efficiency gains that T+1 can deliver but are not essential to the successful implementation of T+1.
“DTCC supports the recommendations in the report and stands ready to partner with the industry to ensure a smooth transition. Specifically, the report’s mention of automation as a key enabler of accelerated settlement, which states, “The sooner you automate or outsource to automated partners…. the more likely your institution will be able to successfully and efficiently settle within the T+1 timeframe,” was well received,” DTCC said in an emailed statement.