T+1 settlement cycle in the UK, EU & Switzerland

In February 2025, the Accelerated Settlement Taskforce (AST), through its Technical Group, published a report that outlines the UK’s strategy to move to a T+1 securities settlement cycle by 11 October 2027. This transition is aimed at improving market efficiency, reducing counterparty risk, and keeping the country in step with global market developments.

The report proposes a UK T+1 Code of Conduct that includes 12 ‘critical’ and 27 ‘highly recommended’ actions covering end-to-end securities settlement lifecycle.

It also suggests that participants initiate phased operational and behavioural adjustments in 2025-26 to ensure the UK is operationally ready for T+1 before the deadline, minimizing disruption and maintaining market competitiveness.

The European Securities and Markets Authority (ESMA) has also proposed shifting the EU securities settlement cycle to T+1 by 11 October 2027, the same deadline as the UK.

To support this change, ESMA recommends updating regulatory frameworks like the Central Securities Depositories Regulation (CSDR), greater investment in automation and post-trade infrastructure, and a coordinated implementation strategy involving the multiple regulators, central banks, central counterparties, central securities depositories, and industry participants to ensure smooth transition.

ESMA have identified 3 phases for the transition:

• A planning phase with the finalisation of technical solutions by the industry to be completed by Q3 2025
• A development phase for industry implementation to be completed by Q4 2026
• A testing phase over 2027 until the transition date

The Swiss Securities Post-Trade Council has also recommended to transition to T+1 for the Switzerland and Liechtenstein domestic markets in October 2027.

In January 2025, the Swiss Securities Post-Trade Council (swissSPTC) recommended that the transition to a T+1 Settlement Cycle for the domestic markets in Switzerland and Liechtenstein should occur in October 2027.

The recommendation is acknowledged by the Swiss State Secretariat for International Finance (SIF). SIX Swiss Exchange will commence the process of seeking approval to adjust their Rule Book to accommodate the change of the settlement cycle at the appropriate time.

The swissSPTC Task Force T+1 has initiated a detailed assessment on specific proposals and will produce recommendations for the transition. They have also recommended that the Swiss and Liechtenstein market participants continue to drive forward their internal planning to adopt a shorter settlement cycle and ensure their preparedness for an effective migration.