PIMFA
T+1 ACCELERATED SETTLEMENT
In December 2022, the UK Government launched an Accelerated Settlement Taskforce (T+1) to explore the potential for faster settlement of financial trades in the UK.
Transaction date + 1 means the settlement date of a trade is one business day after the trade execution date. For example, if a trade is executed on a Tuesday, settlement, when the buyer receives the securities, and the seller receives the proceeds, should occur on Wednesday.
The US Securities and Exchange Commission has adopted the rule to shorten their settlement cycle for all US securities transactions selling through the Depository Trust & Clearing Corporation (DTCC) to T+1, with effect from 28th May 2024. Trades in the UK and EU are currently settled on a T+2 basis.
No timetable has yet been set for the UK to move towards a T+1 settlement cycle. However, it is expected that the UK Accelerated Settlement Taskforce will make recommendations to the government by the end of 2024. Consideration must also be given to European markets and EU plans for T+1, which have also not yet been confirmed.
In the meantime, further information of the content and material produced by the UK Accelerated Settlement Taskforce Technical Group can be found on the PIMFA T+1 resource page.
- PIMFA FOCUS FOR MEMBERS
The PIMFA T+1 Working Group is raising awareness amongst members and the sector of this future change to trading and settlement processing and identifying what firms will need to consider across their businesses, operations and client-serving.
PIMFA is collaborating with the International Securities Association for Institutional Trade Communication (ISITC) and the Chartered Institute for Securities & Investment (CISI) to investigate the impacts of T+1 and is a member of the Accelerated Settlement Taskforce Technical Working Group.
latest news
AST: Accelerated Settlement in the UK Q1 2025 – key findings
The Accelerated Settlement Taskforce (AST) has published findings from research into how prepared the global finance community is for a transition to T+1 settlements in the UK:
- the majority of firms are now beginning to prepare to meet the guidelines set out in the UK AST implementation plan, which requires firms to accelerate up to 29% of their post-trade instructions for UK trades.
Read the findings here.
The Road to T+1 Settlement
Read our blog on the UK’s transition to T+1 settlement.
31st October 2024
PIMFA responded to Accelerated Settlement Taskforce, Technical Group Draft Recommendations Report & Consultation
Read the response here
