The United Kingdom, European Union, Switzerland, and Liechtenstein now have a two-year window to prepare for the transition to a T+1 settlement cycle, a significant shift for the region's financial markets.
Val Wotton, Managing Director and Global Head of Equities Solutions at DTCC, commented on the timeline:
“As of October 11, market participants in the United Kingdom, European Union, Switzerland and Liechtenstein have exactly two years to prepare for T+1 implementation. While North America’s successful move to T+1 provided great insights, European market structure is more complex and presents unique challenges. Research, industry consultations, and our own experience spearheading the US transition have confirmed that automation of post-trade processes across the trade lifecycle are critical to firms’ preparedness for shorter settlement cycles.
“The move to T+1 provides firms across Europe with an opportunity to enhance automation and collaboration, acting as a catalyst for greater efficiency, reduced risk, and improved liquidity as well as a more harmonized post-trade environment that aligns the region with global peers. With enhanced automation, standardisation and increased market efficiencies, the migration to T+1 will bolster the EU ‘s Savings and Investments Union (SIU) , the UK’s Competitiveness and Growth agenda as well as national and regional growth initiatives.
With clear timelines, aligned frameworks, and strong collaboration, a smooth and successful transition is highly possible. But with just two years to go, firms must act decisively to modernize their operations, embrace automation, and coordinate across jurisdictions. DTCC remains committed to supporting market participants and fostering collaboration across global markets during this transition and beyond.”
