Reeves confirms date for shift to T+1 settlement
19 February 2025 UK
Image: UK Parliament
The UK’s Chancellor of the Exchequer Rachel Reeves has confirmed 11 October as the date for a market shift to a T+1 settlement cycle for securities.
Reeves confirmed the date in a meeting with members of J.P. Morgan, Blackrock, Abrdn, Morgan Stanley, Goldman Sachs, Citi, Fidelity, and Schroders.
She said: “I am determined to go further and faster to drive growth and put more money into people’s pockets through our Plan for Change. Speeding up the settlement of trades makes our financial markets more efficient and internationally competitive.”
Andrew Bailey, Governor of the Bank of England, added: “Shortening the UK securities settlement cycle to T+1 will bring important financial stability benefits from reduced counterparty credit risk in financial markets.
“It is important that firms and settlement infrastructures have robust plans for an orderly transition in October 2027. As part of this effort, the Bank looks forward to continuing dialogue with regulators in other markets which are pursuing similar changes.”
The government has accepted all recommendations made by the Accelerated Settlement Technical Group.
In response to the news, Daniel Carpenter, CEO of Meritsoft, a Cognizant company, has welcomed the shift but stressed that the UK must learn from North America’s shift in May 2024.
He explained: “The Chancellor has been really clear today that bringing the UK into line with the US market on securities settlement will be a driver for growth. But it's not an easy task. While the US move to shorter settlements has so far gone to plan, Europe is in a different situation altogether and will take a lot more planning to ensure the transition goes smoothly across the UK, EU, and Switzerland.
"11 October 2027 might seem like a long way off, but from a planning perspective it’s as good as tomorrow. This is why the government, FCA, and Bank of England are calling on the industry to engage with their recommendations and start planning as soon as possible.”
Reeves confirmed the date in a meeting with members of J.P. Morgan, Blackrock, Abrdn, Morgan Stanley, Goldman Sachs, Citi, Fidelity, and Schroders.
She said: “I am determined to go further and faster to drive growth and put more money into people’s pockets through our Plan for Change. Speeding up the settlement of trades makes our financial markets more efficient and internationally competitive.”
Andrew Bailey, Governor of the Bank of England, added: “Shortening the UK securities settlement cycle to T+1 will bring important financial stability benefits from reduced counterparty credit risk in financial markets.
“It is important that firms and settlement infrastructures have robust plans for an orderly transition in October 2027. As part of this effort, the Bank looks forward to continuing dialogue with regulators in other markets which are pursuing similar changes.”
The government has accepted all recommendations made by the Accelerated Settlement Technical Group.
In response to the news, Daniel Carpenter, CEO of Meritsoft, a Cognizant company, has welcomed the shift but stressed that the UK must learn from North America’s shift in May 2024.
He explained: “The Chancellor has been really clear today that bringing the UK into line with the US market on securities settlement will be a driver for growth. But it's not an easy task. While the US move to shorter settlements has so far gone to plan, Europe is in a different situation altogether and will take a lot more planning to ensure the transition goes smoothly across the UK, EU, and Switzerland.
"11 October 2027 might seem like a long way off, but from a planning perspective it’s as good as tomorrow. This is why the government, FCA, and Bank of England are calling on the industry to engage with their recommendations and start planning as soon as possible.”
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