UK T+1 preparations progressing well ahead of 11 October 2027 deadline

Comparatively, in North America at 18 months out from the deadline, just 67% of firms were actively engaged in the transition

• 83% of firms are actively engaged in the UK’s move to T+1, up from 66% in Q3 2025
• 14% of firms see themselves as already compliant with T+1 requirements
• The volume of firms still in preparation stages for T+1 has reduced by up to half since Q3 2025
• By the end of 2026, 90% of firms will have scoped and funded their T+1 work
• 51% of firms have already automated settlement instruction processing
• Settlement exceptions and pre-trade set up emerge as particular challenges for sell-side
• Funding and FX challenges rank highly for the buy side, along with their exposure to dependencies
• Corporate actions are now one of the highest areas of impact for custodians
• The number of fund managers planning to change their fund dealing cycle as a result of T+1 in the UK has increased by 4%
• 80% of firms are actively engaged in the EU’s move to T+1, up from 65% in Q3 2025

The latest market readiness survey for T+1 in the UK published today has revealed that 83% of firms are actively engaged in the UK’s move to T+1, up from 66% in Q3 2025.

Conducted by The ValueExchange, the research reveals how preparations are progressing in the UK and the EU, as the market heads towards the 11 October 2027 joint deadline for one-day trade settlement.

At a similar juncture in the US transition to T+1 completed in 2024, just 67% of firms were actively engaged in the transition.

The survey shows significant progress in market readiness since the last survey in Q3 2025, with the volume of firms still in preparation stages reducing by half. The survey also found that 90% of firms expect to have scoped and funded their T+1 work by the end of 2026.

Automation has been a strong area of focus for preparations, with the UK Accelerated Settlement Taskforce (AST) advising that automation of post-trade processes is the only way to ensure success in a T+1 world. These new figures show that 51% of firms have already automated settlement instruction processing and 63% of firms expect to complete their automation work in 2027. Very few firms expect to have to continue T+1 work past 2027.

The data also shows where the challenges for T+1 preparedness could lie, with the buy-side emerging as less prepared than the rest of the market.

57% of the buy-side has yet to start development work, with concerns around funding and FX challenges ranking highly.

The buy -side are also concerned about how dependencies on custodians or settlement agents as well as on clients and counterparties could impact them in T+1.

Concerns have also emerged around broker and service provider readiness, with less than half of firms seeing their service provider as being able to support their T+1 preparations today and only 19% of respondents feeling that their prime broker is able to support them today.

The number of fund managers planning to change their fund dealing cycle as a result of T+1 in the UK has increased by 4%, with 63% planning to change it ahead of the deadline and 26% after the deadline.

On the sell-side, overall confidence is higher but their main challenges are settlement exceptions and pre-trade set-up.

Following the release of the UK and EU’s joint T+1 testing plan earlier this year, 78% of FMIs will be ready for testing in Q1 2027, the core industry window.

Andrew Douglas, Chair of the UK Accelerated Settlement Taskforce commented: “These findings demonstrate the momentum that is building across the market towards T+1 ahead of the all-important 11 October 2027 deadline. We are sitting ahead of where the US was at a comparable point in its journey and the industry is acting on the lessons learned from that US experience about the need for automation, with good progress made particularly in settlement instruction automation.

“Encouragingly, the number of fund managers planning to change their fund dealing cycle as a result of T+1 in the UK is increasing, showing that this segment of the market is engaging with the transition. Over the coming months, we would like to see greater progress on the buy side in order to ensure a smooth transition to T+1 in which everyone within the settlement chain is ready for success.”

Chris Elms, CEO of Euroclear UK & International commented: “These results mark a positive step forward, with firms across both the UK and EU clearly making strong progress towards the T+1 deadline. The rise in firms actively engaging with the UK’s transition is particularly encouraging and reflects growing momentum across the market. It is essential that this progress continues, and we will continue engaging with stakeholders to support market preparedness as we approach the transition date.”

Val Wotton, Managing Director and Global Head of Equities Solutions at The Depository Trust & Clearing Corporation (DTCC) commented: “On the whole, T+1 readiness is increasing as a result of good preparation work, as project teams have focused on managing the impacts of the pressing items like settlements, fails and securities borrowing and lending. Now, the focus turns to trade execution and client onboarding as the two areas of fastest growing concern across the market.

“As we inch closer to the one year to go mark, we urge firms to engage in earnest with the areas expected to pose challenges, such as data standardization including accurate and validated Standing Settlement Instructions (SSIs) and Place of Settlement (PSET), in order to find workable solutions and processes ahead of the deadline. As always, we stand ready to support the global markets as the financial services industry continues to evolve.

Source:  Accelerated Settlement Taskforce