The UK market is moving to faster settlement of securities trades on 11 October 2027. Find out how to prepare.
This means if you buy a stock or bond, it will be settled within 1 business day (T+1), instead of the current 2-day (T+2) cycle.
This change aims to make financial markets more efficient and reduce risk.
The Accelerated Settlement Taskforce (AST) will oversee and project manage the transition.
We support the move, alongside the Treasury and the Bank of England.
What firms should do
Firms should be planning now to prepare for T+1 settlement.
If firms are not prepared for the October 2027 deadline, we may take action to protect market integrity[2].
Read:
- AST’s recommendations[1] to understand which are relevant for you.
- Our blog on what firms should do now to prepare[3].
- The Government's draft Statutory Instrument[4] and policy note[5].
If you're an asset management or alternative firm, read our letter to compliance officers (PDF)[6].
The letter was updated on 18 November 2025 to clarify our expectations of the responsibilities of chief compliance officers.
We thank all those who engaged with us on this matter.
Countdown to T+1
-
1
2025
Create a project plan and budget.
-
2
2026
Start making changes to systems and processes.
-
3
2027
Test your systems to make sure you’re ready for October.
Actions for 2025: plan and budget your changes
Firms should decide now what you need to do to move to a T+1 settlement cycle.
This can include:
- budget and resource planning
- operational systems changes and testing
- agreements with third party providers
- counterparty arrangements
Consider appropriate automation. This may increase your processing capability, and thereby resilience for dealing with extra volumes and increased risks at times of market stress.
Who to contact
If you have questions about the recommendations and the overall move to T+1 settlement, contact the AST[7], in its role as coordinator.
Our role
Market participants are leading the move to T+1 settlement.
Our role is to ensure firms and trading venues are prepared for the transition.
We will:
- Tell firms how to prepare, using our website and speeches.
- Continue to supervise firms.
- Monitor the market.
We may have discussions with firms, directly or via trade associations, to understand how firms are preparing, including how your activities align with the recommendations of the AST.
Our work is part of a broader market initiative to communicate about T+1, including by firms through client engagement.
We are largely satisfied with how market participants are preparing for T+1 so far.
About 87% of firms have identified changes they need to make to prepare for T+1, according to a poll at an AST industry event in July 2025.
Settlement of trades in investment funds
In May 2025, key asset management trade associations recommended[8] that firms should alter their fund settlement timings to T+2 (that is, 2 business days after the trade date) from 11 October 2027.
We believe that for UK authorised funds and recognised schemes investing predominantly in markets that will operate on T+1 settlement, moving unit transactions to T+2 settlement would be in investors' interests.
We support the trade bodies' recommendation and encourage firms to plan early to deliver this transition, working with all parties in the distribution chain.
If you're a fund management firm or service provider, read more about the recommendation[9].
Background to T+1
UK
November 2025
On 20 November 2025, the Government published a draft Statutory Instrument[5], along with a related policy note[6] to make T+1 the standard settlement cycle in the UK from 11 October 2027.
February 2025
The AST published its final report, outlining the key technical and operational recommendations for the UK’s move to T+1.
The government accepted the AST’s recommendation[11] for the UK to move to T+1 settlement.
September 2024
The AST published a report for consultation[12] which included draft recommendations on the legislative, regulatory, technical and operational changes for the move.
March 2024
The AST published a report[13] recommending the UK move to a T+1 settlement cycle by end of 2027.
The report also recommended:
- The UK should consider aligning with the EU in transitioning to T+1.
- Setting up a group to consider the technical and operational changes required for the UK to transition to T+1 settlement.
The government accepted all the recommendations and appointed Andrew Douglas to chair the AST for the next phase of work. The group was made up of industry experts.
December 2022
The Chancellor appointed Charlie Geffen to chair the independent AST to explore the potential for faster settlement of securities traded in the UK.
Other jurisdictions
The United States, Canada, Mexico and Argentina transitioned to T+1 settlement in May 2024.
The EU will transition to T+1 settlement on 11 October 2027. Certain securities financing transactions (SFTs) are exempted from the settlement cycle requirement. The European Parliament formally approved the T+1 settlement legislation[14] in September 2025. The EU T+1 Industry Committee also published recommendations for the EU's transition to T+1 settlement in its High-Level Roadmap[15], in June 2025.
Domestic markets in Switzerland are also set to move to T+1 in October 2027. This follows a statement[16] from the Swiss Securities Post-Trade Council in January 2025, recommending the move to T+1.
