The UK’s Financial Conduct Authority (FCA) has set out its expectations for firms as the market prepares to move to a one-day securities settlement cycle. In a letter to compliance officers, Director of the Buy-side, Michele Beck, confirmed that the government intends to introduce legislation mandating T+1 settlement from 11 October 2027.
The change will cover transferable securities traded on UK venues and settled through UK central securities depositories. According to the FCA, the shift aims to improve market efficiency, reduce risk, and strengthen the UK’s global competitiveness. The regulator is urging firms to start preparing immediately, following the recommendations set out by the Accelerated Settlement Taskforce earlier this year.
The FCA stresses that all firms involved in the settlement chain should conduct a thorough review of their systems, processes, and dependencies. This includes ensuring trade allocations, confirmations, and instructions are completed earlier in the day, and that cash and securities are available in time to meet the shortened deadline.
Timelines and testing
By the end of 2025, firms are expected to have established a project plan, secured internal resources, and assessed where operational or technological changes are needed. The FCA expects concrete progress by the end of 2026, with internal and external testing taking place in 2027 ahead of the October go-live.
The FCA has also warned that it will monitor firms’ readiness. Smaller and alternative investment firms may be less aware of the change, and the regulator plans to engage with the industry to track progress. Firms that fail to plan adequately could face supervisory intervention.
The FCA’s message is clear: with two years to go, preparations for T+1 should already be underway across the post-trade chain.
