The Financial Conduct Authority (FCA) said that 87% of market participants have already identified the changes they need to make ahead of the UK’s planned transition to a T+1 settlement cycle in October 2027.
FCA: Poll Shows Majority of Firms Ready for 2027 Switch to T+1 Settlement
The figure came from a poll conducted at the Accelerated Settlement Taskforce (AST) industry event in July, where the FCA’s interim head of capital markets, Jamie Bell, discussed market readiness with Richard Monks of EY.
“T+1 will make our markets more efficient, and we support this,” the FCA said, noting that initial engagement with market participants had been “positive” and preparations were largely satisfactory so far.
Bell is said to have emphasised the importance of automation in delivering an efficient settlement process. However, the FCA warned that while it plays a supportive role, it “will act if firms are not prepared for the October 2027 deadline.”
The move to T+1, which shortens the time to finalise securities transactions from two business days to one, was recommended by the AST and accepted by the UK government earlier this year. The change is intended to reduce counterparty risk and improve market efficiency.
Other jurisdictions, including the United States, Canada and Mexico, have already adopted T+1, while the European Union plans to transition on the same date as the U.K.
The FCA urged firms to determine operational, contractual and budgetary requirements early to ensure a smooth shift, highlighting that the initiative is part of a broader market effort coordinated by the AST.
