Financial firms in the UK, EU, and Switzerland have entered the final year of preparation for the transition to a next-day settlement timeline, known as T+1, with the deadline set for 11 October 2027.
Andrew Douglas, chair of the UK Accelerated Settlement Taskforce, highlighted that while 83% of firms are actively engaged in preparing for T+1, the focus must now shift from engagement to readiness and implementation. The next 12 months are crucial for firms to implement and test their processes to ensure T+1 compliance.
A significant operational impact is expected, as firms will have 20% of the current time to complete all post-trade processing. Automation is identified as an essential behaviour, with firms needing to build or outsource solutions and improve data governance. The Accelerated Settlement Taskforce will begin publishing rolling three-month averages of settlement rates from 2027.
Several key milestones precede the final deadline. By 31 December 2026, allocation and confirmation processing should be completed by 23:59 UK time on the trade date. The same year-end milestone applies to the implementation of FMSB Core Principles and templates for SSIs, and the automation of securities lending recalls and return instruction flows.