On 6 February, the UK’s Accelerated Settlement Taskforce (AST) published its report asserting a UK move to a T+1 settlement cycle by 11 October 2027, and listing a set of recommendations for the shift.
Following this, the UK’s Financial Conduct Authority (FCA) has welcomed the recommendations, alongside the Government and the Bank of England.
The FCA stated that it supports the transition to T+1 settlement in UK markets and calls on the industry to engage and start planning as soon as possible.
“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,” said Nikhil Rathi, chief executive at the FCA.
The plan published by the AST includes a Code of Conduct for market participants, confirming that 11 October 2027 will be the first trading date in UK cash equities for settlement on a T+1 cycle; aligning with the European Union and Switzerland.
Elsewhere in its report, the AST included five behavioural commitments including a push for automation in SSIs, corporate actions, stock lending recalls, and a focus on ‘action this day’ urging firms to begin planning and where practicable, immediate implementation.
Read more: UK taskforce publishes blueprint for T+1 transition
At the time of publication of the report, Andrew Douglas, chair of the UK T+1 AST, said: “This is a milestone in the UK’s journey to T+1 settlement and reflects a substantial amount of work and co-operation across the industry.
“We have a date and a detailed plan for the way ahead. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026. Automation will be a key component of a successful implementation.”