The UK market intends to move to a T+1 settlement cycle on 11 October 2027. T+1 will make our markets more efficient, and we support this.
The Accelerated Settlement Taskforce (AST) has developed a plan to move to faster settlement of securities trades. This means if you buy a stock or bond, it will be settled within 1 business day.
Faster settlement of securities trades under T+1
On 19 February 2025, the government announced it accepted the AST’s recommendation to change the current T+2 requirement under the UK Central Securities Depositories Regulation to a T+1 requirement. This change takes effect on 11 October 2027.
The AST published its final report on 6 February, 2025, outlining the key technical and operational recommendations for the UK’s move to T+1. We, alongside the government and the Bank of England, supported the move. The government agreed that the AST will oversee and project manage implementation of the recommendations in the report across the market.
We will continue our supportive role as an observer to the AST, alongside HMT and the Bank of England.
What firms should do
We expect firms to engage with the recommendations of the AST to understand which are relevant for them.
Firms should determine now what is required to move to a T+1 settlement cycle and plan early to deliver this transition. This can include budget considerations, operational systems changes and testing, agreements with third party providers and counterparty arrangements.
As part of our monitoring ahead of implementation, we may have discussions with firms, directly or via trade associations, to understand firm preparedness including how their activities align with the recommendations of the AST.
If firms have any general queries relating to the recommendations and the overall move to T+1 settlement, these should be addressed to the AST, in its role as coordinator.
Background to T+1
UK
In December 2022, the Chancellor appointed Charlie Geffen to chair the independent AST to explore the potential for faster settlement of securities traded in the UK. In March 2024, the AST published a report which recommended that the UK should move to a T+1 settlement cycle by end of 2027.
The report also recommended:
- the UK should consider alignment with the EU in transitioning to T+1
- setting up a group to consider the technical and operational changes required for the UK to transition to T+1 settlement
The government accepted all the recommendations and appointed Andrew Douglas to chair the AST for the next phase of work. The group was comprised of industry experts
The AST published a report for consultation in September 2024 which included draft recommendations on the legislative, regulatory, technical, and operational changes required for the UK to move to T+1 settlement.
Other jurisdictions
In May 2024, the United States, Canada, Mexico and Argentina transitioned to T+1 settlement.
In February 2025, the European Commission proposed 11 October 2027 as the appropriate date for the EU’s transition to T+1 settlement. The European Securities and Markets Authority (ESMA) subsequently launched a consultation on a set of proposals to amend the technical standards on its settlement discipline regime.
In January 2025, the Swiss Securities Post-Trade Council published a statement recommending a move to T+1, also in October 2027.
