HM Treasury has confirmed that the UK will shorten the standard securities settlement cycle to T+1 from 11 October 2027, moving typical trades such as share purchases from settlement in two days to settlement the next day. The government, working alongside the Financial Conduct Authority and the Bank of England, endorsed the industry recommendation and accepted all proposals from the Accelerated Settlement Technical Group. The package includes a detailed implementation plan and a call for firms and market infrastructures to engage with the recommendations and begin planning immediately. Terms of reference have been published for the next phase, with an industry taskforce chaired by Andrew Douglas overseeing delivery through implementation and briefly afterwards to assess short-term impacts; HM Treasury, the FCA and the Bank of England will act as observers, with industry chairs from the European Union and Switzerland invited to observe to encourage cross-border alignment. HM Treasury plans to bring forward legislation to implement the move, including setting the transition date. The FCA has also launched a dedicated webpage to support firms during the transition, while the Bank of England will work with the financial market infrastructures it supervises on preparedness and implementation actions.
HM Treasury 2025-02-19
HM Treasury accepts industry plan and will legislate for UK markets to move to T+1 securities settlement by 11 October 2027
HM Treasury announced the UK will shorten the securities settlement cycle to T+1 from 11 October 2027, following industry recommendations. The Financial Conduct Authority and the Bank of England will support the transition, with an industry taskforce led by Andrew Douglas overseeing implementation. Legislation will be introduced to facilitate the change, and cross-border alignment is encouraged with observers from the EU and Switzerland.