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.
Maria Fritzsche
Senior Policy Adviser - Operational Policy, Regulation and Innovation Lead
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latest news
UK Accelerated Settlement Taskforce Q2 Review
The second Quarterly Review of 2026 highlights the UK’s progress on moving to T+1 on 11 October 2027. For the next 15 months, firms should ensure that their programmes are fully funded, key dependencies are being addressed, and they are preparing for testing.
Highlights from Q2 2026 include:
- The T+1 Market Readiness Survey reveals 83% of firms are now actively engaged in their programmes, up from 66% in Q3 2025
- The average CREST settlement rate across July to September 2027 will be used to set the target settlement rate for the post-transition period from October 2027
- In an open letter to market participants, Chair Andrew Douglas highlighted key recommendations within the Implementation Plan that are expected to be completed by the end of 2026
UK T+1 Preparations Progressing Ahead of Schedule
The latest UK Accelerated Settlement Taskforce research highlights strong momentum toward T+1 in the UK, with 83% of firms now actively engaged in the transition, well ahead of the US at a comparable stage. The market readiness survey shows significant progress since its previous edition, with 90% of firms expected to have scoped and funded their T+1 work by the end of 2026.
The survey also shows that over half of the buy-side are yet to begin development work, with concerns around funding, FX challenges, and custodian dependency ranking highly. Confidence in service provider readiness is also limited.
Industry testing is expected to ramp up in early 2027, ahead of the October 2027 deadline.
Read the report here.
T+1 Settlement Testing Framework Now Published
The UK Accelerated Settlement Taskforce, EU T+1 Industry Committee, and Swiss Securities Post Trade Council have jointly published a testing framework for T+1 settlement, covering testing logistics and timelines, key touchpoints, and scenario planning. Firms of all sizes are encouraged to assess their own readiness metrics ahead of the transition. To understand where you stand, complete the T+1 Scorecard Survey for a personalised risk scorecard and peer benchmark