The EU’s transition to T+1 settlement, set for 11 October 2027, might be more than two years away, but for those who are willing, it’s possible to achieve right now. At the upcoming PostTrade 360° 2025 conference, Matthew Johnson, executive director at Depository Trust and Clearing Corporation (DTCC), will take to the stage with his session titled, “T+1 impacts through the trade journey, pt 3: enrichment and matching”. He will touch on the tools and technology already available for the transition to T+1 and their application in said areas.
Out of the many developments that are catalysed due to the T+1 transition, Johnson names two that he believes are of particular interest to market participants: automation and same-day matching.
Pointing out that there remain many market participants that are still relying on antiquated processes such as Excel spreadsheets, emails, and even faxes, he says, “You’ll see the word ‘automation’ through all the recommendations. It really is the backbone to a successful T1 transition.”
“It’s about digitising, electronifying, and using centralised platforms to complete the whole confirmation, allocation, matching, and enrichment process that allows you to lock in settlement risk. Without using an electronic platform, it’s near impossible to do that.”
On same-day matching, he says, “If automated solutions are being used by both the buyer and the seller, there’s absolutely no reason why you can’t have settlement certainty, especially if you’re enriching all of the relevant settlement information, whether it’s place of settlement or the standard settlement instructions that need to be used. Automating the process of capturing settlement information and sharing it with the counterparty, and then instructing to market gives you settlement certainty.”
The tools are available
He reveals that after having gone through the T+1 transition with the US market, DTCC is happy to support the UK and EU to do the same by sharing metrics, data, and best practices learnt from the US move. As a part of its efforts to do so, DTCC is currently engaging in ongoing dialogue with the region’s regulators, T1 task forces, policy makers, and industry bodies, and have created a website dedicated to T+1 resources, as well as implemented new workflows that can increase settlement efficiency.
“The tools, solutions, technology, and software are all readily available today,” Johnson says, citing DTCC’s suite of products, including CTM, ALERT, and Settlement Instruction Manager as examples. “If you use these products in the way they are intended to be used, you can be literally T+1 ready today.”
Have you signed up yet to be in Stockholm for PostTrade 360° 2025 on 3–4 September? It’s free for securities operations pros, both trading and investor sides! (Vendor firm representatives need a sponsorship agreement.) The powerful event website lets you register, see all other delegates, schedule sessions and meetings, and message. Find all related articles, including loads of teaser interviews, here.
