More than four-fifths of financial firms are now actively engaged in the UK’s transition to T+1 settlement in 2024, according to the UK Accelerated Settlement Taskforce’s Q1 2026 Market Readiness Survey.
Led by the UK Accelerated Settlement Taskforce, supported by Euroclear, The Depository Trust & Clearing Corporation (DTCC) and other associations, the survey found out how preparations are going on in the UK and the EU, as the market heads towards the 11 October 2027 joint deadline for one-day trade ( T+1) settlement.
83% of firms are actively involved in T+1 preparations, up from 66% in Q3 2025, according to the researchers, who added that 67% of firms in the US market were actively engaged at a similar stage before its T+1 implementation.
90% of firms expect their T+1 programmes to be fully scoped and funded by the end of 2026, the survey found.
51% of firms have already automated settlement instruction processing, while 63% expect to complete automation projects during 2027.
In the buy-side, 57% of respondents are yet to begin development work. Funding constraints and foreign exchange challenges emerged as the key concerns. Less than half of firms see their service provider as being able to support their current T+1 preparations and about 19% of respondents feel that their prime broker is able to support them today.
Fewer than half of respondents believe their service providers can currently support T+1 preparations, and 19% said their prime broker is ready to assist today.
63% of fund managers are planning to alter their fund dealing cycle before the 2027 deadline, up four percentage points from the previous survey. 26% more expect to make changes after implementation.
On the sell-side, confidence levels are higher, although firms identified settlement exceptions and pre-trade setup processes as their main challenges.
78% of financial market infrastructures said they expect to be ready for industry testing during the core testing window in the first quarter of 2027.
Target settlement rates announced for T+1
Andrew Douglas, chair of the UK Accelerated Settlement Taskforce, said: “The number of fund managers planning to change their fund dealing cycle as a result of T+1 in the UK is increasing, showing that this segment of the market is engaging with the transition. Over the coming months, we would like to see greater progress on the buy side in order to ensure a smooth transition to T+1 in which everyone within the settlement chain is ready for success.”
Chris Elms, CEO of Euroclear UK & International, said: “It is essential that this progress continues, and we will continue engaging with stakeholders to support market preparedness as we approach the transition date.”
Val Wotton, MD and global head of equities solutions, DTCC, said: “On the whole, T+1 readiness is increasing as a result of good preparation work, as project teams have focused on managing the impacts of the pressing items like settlements, fails and securities borrowing and lending. Now, the focus turns to trade execution and client onboarding as the two areas of fastest growing concern across the market.
We urge firms to engage in earnest with data standardisation, including accurate and validated Standing Settlement Instructions and Place of Settlement, to find workable solutions and processes ahead of the deadline.”
