UK move to T+1 securities settlement

Settlement is the step after a trade in which securities pass to the buyer and cash to the seller. A draft statutory instrument published by HM Treasury (external site) would shorten the standard time for this step in the UK from two business days after the trade (T+2) to one (T+1). The planned date, 11 October 2027, is the same as in the EU.

The change amends Article 5(2) of the UK Central Securities Depositories Regulation (UK CSDR), the version of the EU regulation that remains part of UK law (external site).

For transferable securities executed on a UK trading venue, the intended settlement date becomes no later than the first business day after trading, as the policy note explains (external site). As an example, a share bought on a Thursday settles on the Friday instead of the following Monday.

The existing exceptions remain for privately negotiated trades executed on a venue and for bilateral trades reported to a venue, according to the policy note (external site). A new exemption covers securities financing transactions, such as repos and securities lending, which serve liquidity management and funding. Margin lending is not exempted, because it is a cash loan.

The Technical Group report of February 2025 (external site) sets operational steps. Allocation and confirmation processing is completed as soon as reasonably practicable and before any settlement deadline.

The Financial Conduct Authority (FCA) oversees the requirement for trading venues and participants of central securities depositories (CSDs); the Bank of England covers central counterparties and CSDs, according to the policy note (external site). Banks, investment firms, asset managers and custodians act through these channels. Roles directly affected include:

• Settlements Analyst: instructions and matching for UK trades run against a one-day deadline.
• Confirmations Analyst: agreement of trade details moves to the trade date.
• Middle Office Analyst: allocations and booking checks are completed within hours of execution.
• Securities Lending & Repo Analyst: financing trades are checked against the scope of the new exemption.
• Custody Operations Analyst: client instructions reach the CSD within the shorter window.

HM Treasury published the draft instrument with a policy note and invited technical comments until 27 February 2026, as GOV.UK records (external site). The draft (external site) states that it comes into force on 11 October 2027.

The government intends to lay the final instrument before Parliament in advance of 11 October 2027, according to the policy note (external site). Until it is made, the date is recorded as expected and the status as proposed.

UK CSDR sets T+2 for trades on UK trading venues in its current Article 5(2) (external site). The rule came from the EU regulation of 2014.

The Accelerated Settlement Taskforce (external site) reported in March 2024 on a move to T+1. A Technical Group then set out the detailed plan in February 2025 (external site), which the draft instrument now puts into law.