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
FCA Speech: Reshaping Regulation, Deliberately
The FCA has published a speech by Sarah Pritchard (Deputy Chief Executive) which notes key reforms relating to retail investment such as:
- The introduction of targeted support with over a dozen firms now authorised
- Moving away from prescriptive disclosure requirements
The speech also notes that the FCA will publish final rules and case studies (prepared with the Financial Ombudsman Service) relating to simplified advice in due course.
Stating that investment fraud losses rose 40% in 2025, the FCA calls for a system-wide response with firms encouraged to:
- Tailor their financial crime controls to their specific risks, particularly in higher-risk areas such private markets
- Share intelligence with the FCA proactively
With regards to the T+1 settlement deadline less than a year away, the regulator warned that it will act against firms that are not ready.
T+1: One day less to get things right
From PIMFA Journal, Edition #34, Hannah Buckle of Dorsum discusses the UK’s move to T+1 settlement, what it means for firms, and why preparation should start now.
T+1 Settlement: FCA Highlights Buy Side Readiness
The FCA has urged firms to maintain momentum in their preparations for the UK’s move to T+1 settlement in October 2027, noting that readiness across parts of the buy side remains mixed. Firms are encouraged to review their end-to-end settlement processes, increase automation where appropriate and engage early with clients, counterparties and service providers to avoid operational bottlenecks as implementation approaches.
Read more here