The UK government has published a draft statutory instrument (SI) outlining how it intends to shift the UK securities market settlement cycle from T+2 to T+1, ensuring trades settle within one business day. According to a policy note accompanying the draft, the government plans for the requirement to take effect from 11 October 2027, following recommendations from the industry-led Accelerated Settlement Taskforce (AST) and its technical group.
The draft SI, published for stakeholder feedback, proposes to amend the pertinent aspects of the UK’s version of the UK Central Securities Depositories Regulation (UK-CSDR) in order to mandate a T+1 settlement cycle. The draft clarifies how and when the new regime would apply, for example to cash equities settled in UK central securities depositories and traded on UK venues.
Key practical implications
Market participants—banks, asset managers, custodians, clearing houses and trading venues—will need to review and adapt their operational processes, systems and infrastructure. The draft expects firms to begin preparations now, leading up to full implementation by the target date. Firms will need to assess scope, settlement flows, matching/confirmation systems and internal data readiness to operate on a one-day settlement cycle.
Timeline
The government has invited comments on the draft SI until 27 February 2026. Assuming no major changes, the final regulation will be laid ahead of the 11 October 2027 go-live date. In the meantime, the AST and industry participants will continue to publish guidance, codes of conduct and implementation playbooks.
