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The UK T+1 Taskforce technical group has earmarked October or November 2027 as the date for a switch to an accelerated settlement cycle in the UK. What’s very clear is that the entire industry, whichever segment you’re in, has that desire is for alignment.
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. Jim Goldie “The impact on a Thursday is that brokers need to fund for another three days.
The first step is a prerequisite to the second and will involve all trades being confirmed/allocated “as soon as practicable and no later than on trade date”. The UK put together a taskforce in 2022, releasing its first report in March this year which confirmed that the UK should move to T+1 no later than December 2027.
What are the costs associated with opening a North American FX trading desk? Each trader will need a terminal depending on the trading platform being used, which carries a considerable cost. All of that is the bare minimum set up and the cost of those items are necessary when considering opening a trading desk.
The current timeline for the UK appears to include a plan being put in place in 2025 with the implementation of a T+1 settlement cycle in UK occurring no later than 31 December 2027. When we proposed the rule in February 2022, only about two-thirds (68%) of transactions were being affirmed on trade day.
Step 3: Project the Changing Cash and Debt Balances and the Net Interest Expense If the company needs extra funds to maintain its Cash balance, you can assume it issues Debt; if it has excess Distributable Cash Flow, you can assume it retains the Cash.
Deal financing became more difficult and expensive, placing more emphasis on alternative funding and value creation. In one of the most high-profile examples of this increased scrutiny, the US Federal Trade Commission (FTC) attempted to block Horizon Therapeutics’ $29.3 trillion – representing a 10-year low.
The UKs Accelerated Settlement Taskforce (AST) is recommending that the UK moves to the T+1 settlement cycle for securities on 11 October 2027 in line with its European counterparts. The post UK confirms October 2027 alignment with EU and Switzerland for T+1 transition appeared first on The TRADE.
On 6 February, the UKs Accelerated Settlement Taskforce (AST) published its report asserting a UK move to a T+1 settlement cycle by 11 October 2027, and listing a set of recommendations for the shift. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026.
Looking ahead to next year, we anticipate that the buy-side will maintain a strong focus on best practices for FX risk mitigation, particularly in response to market volatility stemming from ongoing geopolitical risks and the continued trend for FX to be traded as an asset class.
Jim Kaye, Executive Director at the FIX Trading Community Next year will be the year of preparation. Market participants readiness for key milestones, like the anticipated go-live of the European consolidated tape (CTP) in 2025 or the transition to T+1 settlement in the UK/EU in 2027, will be critical to ensure long-term success.
We are encouraged to see such strong, early engagement from the industry ahead of the UKs transition to T+1 in 2027, said Andrew Douglas, chair of the UK Accelerated Settlement Taskforce. The post Industry engagement strong in Europe ahead of T+1 transition, finds survey appeared first on The TRADE. Challenges remain, however.
The plan includes a Code of Conduct for market participants, which confirms11 October 2027 will be the first trading date in UK cash equities forsettlementon aT+1cycle in line with the European Union and Switzerland. Primary regulation, UK CSDR, will be amended to reflect that T+1 will be mandatory from 11 October 2027.
The UK will move to T+1 on 11 October 2027, in line with the EU and Switzerland. However, the challenge currently lies in ensuring a successful migration by October 2027. Firms must act early to review and adapt their post-trade operations to ensure a seamless transition.
A gathered panel of T+1 experts at the FIX EMEA Trading conference were in agreement about the inevitability of an eventual further shift in settlement times and, appeared cautiously optimistic that firms are for the most part sufficiently aware of the need to innovate. Do you want to evolve, or do you want to go extinct?
I think it’s similar to 2024 to some extent, the main challenges are going to be political and macroeconomic uncertainties and how that will impact traders trading strategy. Financial products are different in EM than in developed markets where products are more electronic, with more high frequency trading, etc.
As the industry moves towards a consolidated tape and the looming T+1 deadline, established players will likely continue positioning themselves to expand their market share or protect their existing trading, data, and technology businesses. In 2025, we must challenge existing workflows and the status quo to innovate and compete globally.
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