More than 60 per cent of global financial firms are now engaging in preparations for the UK’s transition to a T+1 settlement cycle in 2027, according to new research from ValueExchange. Commissioned by the UK Accelerated Settlement Taskforce and supported by Euroclear, DTCC, and several industry associations, the report draws on insights from over 550 organisations across the investment chain.
The findings suggest that while awareness of the 2027 deadline is growing, implementation is lagging. Under the Taskforce’s guidelines, firms must be able to complete trade allocations and confirmations on trade date by the end of 2026, a milestone that up to 26 per cent of respondents expect to miss.
Despite the transition being more than two years away, 2025 is expected to be a quiet year in terms of actual implementation activity. This raises concerns among industry observers, given the operational changes required to meet the UK targets. Roughly three-quarters of firms see same-day processing of allocations and confirmations as critical to the transition’s success.
The research also points to uncertainty around how to interpret and implement the Taskforce’s guidelines. Just over half of the firms surveyed say they lack the clarity needed to take concrete steps. Specific pain points include standardisation of post-trade processes and automation of key tasks such as account setup and securities issuance.
EU alignment
Another challenge is the risk of divergence between the UK and EU approaches to settlement cycles. With many firms operating across both markets, uncertainty around future alignment is seen as a key dependency for the UK timeline.
While some firms are building on their recent experience with North America’s shift to T+1, a significant portion, 35 per cent, still report uncertainty around core elements such as funding and valuations under the new regime.
