One year to T+1: How should firms get ready for October 2027?

With a year remaining until the October 2027 deadline, firms must begin transitioning to a next-day settlement timeline, according to Andrew Douglas, chair of the UK Accelerated Settlement Taskforce. The UK, EU, and Switzerland will implement T+1 settlement by November 11, 2027. While 83% of firms are actively preparing for T+1, readiness must now be the focus rather than merely engagement.

The next 12 months should be dedicated to implementing and testing processes to ensure T+1 compliance. Fund managers, custodians, brokers, and vendors must ensure their clients have the necessary information and services for a successful transition. Automation is crucial, as firms will have only 20% of the time currently available to complete 100% of post-trade processing.

Firms must build or outsource solutions while improving data governance to enable straight-through processing. Failure to meet deadlines can result in significant costs, including exception management, funding pressures, and FX complications. Firms should understand why trades fail or are delayed and address the underlying causes before 11 October 2027, as settlement performance will become a visible measure of operational efficiency.