All Aboard the Train Bound for T+1: Next Stop, October 2027

On 11 October 2027, the financial markets of the European Union (EU), United Kingdom (UK), and Switzerland and Liechtenstein, will, or are considering moving to a T+1 settlement cycle, bringing them into line with other financial centres that have already commenced or completed the move.

With both EU and UK governments calling for greater inward investment, either to boost growth, finance digital, green and social transition, or just encourage greater retail investment in securities markets, reducing the time it takes to settle trades is seen as key to meeting these aims. 

In reducing the settlement cycle, markets in the EU, UK, and Switzerland and Liechtenstein will join jurisdictions already operating T+1, such as China, India, the United States and Canada. 

Following extensive consultation and industry feedback, the UK government and European Commission plan to amend their respective versions of the Central Securities Depository Regulation to provide legal certainty so as to ensure T+1 settlement is implemented on 11 October 2027. 

This date has been selected to give market participants time to update and adapt systems and processes. 

Joining the EU and UK, the Swiss Securities Post-Trade Council (swissSPTC) has also recommended that the transition to a T+1 Settlement Cycle for the domestic markets in Switzerland and Liechtenstein should occur in October 2027. SIX, the operator of the Swiss exchange, has committed to gaining adjustments to the Rule Book of SIX Swiss Exchange to accommodate the change of the settlement cycle at the appropriate time.

In this article we consider each of the European proposals in more detail in terms of background leading up to the proposals, suggested approaches, along with actions still to be taken.