The UK’s Financial Conduct Authority (FCA) is calling on market participants to start preparing for the transition to a T+1 settlement cycle, following the final report from the Accelerated Settlement Taskforce (AST), published on 6 February. The report sets 11 October 2027 as the first trading date for T+1 settlement in UK cash equities and outlines key recommendations for the industry.
The FCA has welcomed the AST’s recommendations, along with the UK Government and the Bank of England, emphasising the need for firms to engage and plan early. “We highlighted how the move to T+1 will make our markets more efficient and support growth in our recent letter to the Prime Minister. We will support industry as they move to T+1 and expect firms to engage and plan early”, underscores FCA chief executive Nikhil Rathi.
Steps for implementation
The AST’s plan includes a Code of Conduct for market participants to facilitate the transition. It also aligns the UK’s timeline with similar moves in the European Union and Switzerland, ensuring regulatory consistency across key financial markets.
Beyond setting the transition date, the report outlines five behavioural commitments aimed at improving post-trade processes. These include increasing automation in standing settlement instructions (SSIs), corporate actions, and stock lending recalls. Additionally, the AST urges firms to adopt an “action this day” approach—starting preparations immediately where possible.
