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
T+1 Readiness in Europe and the UK: A Call for Action for 2026
The UK Accelerated Settlement Taskforce and the EU T+1 Industry Committee, are hosting T+1 readiness in Europe and the UK: a call for action in 2026, a hybrid event on 25 March 2026 focused on preparing market participants for accelerated settlement.
The session will provide practical insights into the T+1 test strategy, highlight the latest progress across EU and UK readiness programmes, and outline key priorities and milestones for 2026.
To register and find out more click here.
FCA T+1 settlement: EU transition update
The FCA has published an update regarding EU transition to T+1:
- The EU will transition to T+1 settlement on 11 October 2027
- The T+1 settlement legislation has now been adopted, with firms advised to visit ESMA T+1 for more information
- The EU T+1 Industry Committee also published recommendations for the EU’s transition to T+1 settlement in its High-Level Roadmap in June 2025 – these can be accessed via the EU T+1 Industry Committee website
The FCA also notes domestic markets in Switzerland are also set to move to T+1 in October 2027.
FCA welcomes T+1 Settlement: A Key Milestone for Market Growth
According to the FCA, the move to T+1 settlement marks a significant step forward in supporting market growth and innovation. Faster settlement will help reduce risk, release capital for quicker reinvestment, and bring the UK in line with other major global markets.
The Accelerated Settlement Taskforce (AST) latest report highlights the strong progress made over the past year. By the end of this year, firms are expected to update their systems, adjust their processes, and begin testing the necessary changes. Ensuring a smooth transition to T+1 will be essential to maintaining confidence and integrity across the market.
To read the FCA’s comment and the full report, please click here.