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The UK’s Accelerated Settlement Taskforce has recommended a two-phased approach to shortening the settlement cycle beginning with operational changes in 2025 and a full transition by the end of 2027. More than 80 trade associations and industry participants have volunteered to support the Technical Group.
A full copy of the report can be found here. The post UK T+1 taskforce publishes recommendations ahead of proposed 2027 switch appeared first on The TRADE.
The shift to T+1 in the US can largely be described as a success – affirmation rates remain comfortably high, fail rates have stayed reasonably low and FX trades don’t appear to have shifted to bilateral settlement as feared. Depending on the day of the week or the settlement cycle used it’ll be more expensive to trade.”
Deal financing became more difficult and expensive, placing more emphasis on alternative funding and value creation. Dealmakers leaned into the fact that smaller deals are generally cheaper, as they require less financing and are subject to fewer regulatory hurdles, in each case, if any. trillion – representing a 10-year low.
ESMA announced last month that it would prepare for a move to T+1 in the EU by Q4 2027 in line with the UK. They cover the areas of success criteria, settlement, FMIs, static data, corporate actions, securities financing and FX.
We are also confident that our pioneering central clearing service for European securities financing transactions (SFTs) in equities and ETFs will resonate with market participants. The UK has outlined a roadmap targeting Q4 2027, but despite ample time to prepare, significant actions are likely to commence soon.
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