Accelerated settlement: time to get started

In the context of the UK’s commitment to move to T+1 settlement by October 2027, there is a lot that we can learn from the US in terms of the challenges, opportunities and the technological solutions needed to navigate this accelerated environment successfully. 

The key message, echoed across the panel is that enhanced automation will lead to success. It is essential for capital markets firms to start planning their transition to T+1 settlement now. Communication and collaboration across the ecosystem is integral to success. So, whether you are an investment bank, asset manager, institutional investor or a broker-dealer and custodian – now is the time to accelerate your journey. 

What are the challenges? 
 
The transition to T+1 settlement presents considerable challenges for financial institutions. The need for expedited trade confirmation, settlement and reconciliation in the shortened timelines places considerable pressure on operational capabilities. 

The UK T+1 ‘Code-of-Conduct’ identifies twelve critical actions in four business areas which must be implemented by all market participants to ensure a sustainable transition to T+1. 

Firms must guarantee that their systems and processes are equipped to consistently address these actions, achieve T+1 settlement and uphold high standards of settlement efficiency across various asset classes by October 2027. 

Where to start?  

A short discovery engagement to evaluate existing systems and processes will serve as the foundation for an implementation plan aimed at assisting your organisation in achieving T+1 settlement. 

To improve trade processes and technology integration, firms can review existing processes, identify areas for improvement, and implement technology changes. This may involve integrating new vendor solutions or developing custom engineering solutions.

A centralised platform can be used for capturing and processing trades across asset classes, markets, and entities. This enables firms to accelerate client confirmations and scale their trading activity, while minimising operational and regulatory risk. Firms can leverage expertise in technology and engineering and utilise partner tools to prepare for and transition to T+1 settlement, ensuring compliance, efficiency, and operational resilience.

Efficient solutions required now 

The message from the industry-led task force is clear. 2025 is the time to plan for changes that your organisations will need to make in 2026. So, start talking to your clients, counterparties, vendors and technology partners.

October 2027 will be here before we know it, so don’t delay and get started with the transition to T+1 today!