The UK is set to join the global transition to T+1 settlement, with 11 October 2027 confirmed as the go-live date for cash securities. Following two years of detailed planning, the UK Accelerated Settlement Taskforce (AST) has published its final implementation plan, outlining the regulatory adjustments, operational changes, and industry commitments needed for a smooth transition. The plan is the result of collaboration between 116 firms and over 450 industry experts, working across five key areas: scope, operations, trading & liquidity, legal & regulatory, and lessons learned from North America’s T+1 shift in 2024.
The shift aims to enhance market efficiency, reduce risk, and ensure the UK remains competitive in the evolving global financial landscape. To facilitate the transition, the UK government will need to amend the Central Securities Depositories Regulation (UK CSDR), ensuring flexibility to accommodate other jurisdictions—such as the EU and Switzerland—should they opt to transition at the same time.
A central component of the plan is the UK T+1 Code of Conduct (UK-TCC), a framework designed to help firms understand and meet their obligations under the new settlement cycle. It identifies twelve critical actions that all market participants must implement, covering settlement processes, financial market infrastructure (FMI), securities financing, and data management. Additionally, the plan highlights 26 highly recommended actions aimed at supporting operational resilience during and after the transition.
Operational overhaul
With the shift to T+1, settlement processes will need to be streamlined to ensure trade allocations and confirmations are completed electronically and by 23:59 UK time on trade date (T+0). Settlement instructions must be submitted to the central securities depository (CSD) by 05:59 on T+1 at the latest. These measures aim to improve processing efficiency and reduce settlement failures.
Financial market infrastructures, including trading venues, central counterparties (CCPs), and CSDs, are required to review and update their systems by the end of 2026 to eliminate any technological barriers to T+1. The CREST modernisation project will also play a role in supporting the transition, including extending CREST opening hours on T+0 to 21:00 to allow for later processing.
The road to 2027
Market participants are advised to begin reviewing their internal processes and automation capabilities now. The AST encourages firms to start testing T+1 settlement in a controlled environment within the current T+2 framework, rather than waiting until the final deadline.
As the transition date approaches, an “Implementation Command Centre” will oversee market readiness and coordinate the migration weekend. Post-transition, AST will assess the effectiveness of the implementation and provide recommendations for further refinements.
