The FCA (FCA) said that 87 % of the market participants have already identified the changes they need before the planned transition to the T+1 settlement cycle in October 2027.
This number came from a poll conducted at the rapid settlement tasks industry (AST) in July, where FCA’s temporary head of capital markets, Jimmy Bell, discussed the market with Richard Monks of Ey.
“The T+1 will make our markets more efficient, and we support this,” FCA said, noting that the initial participation with the market participants was “positive” and the preparations have been largely satisfactory so far.
Bell is said to have stressed the importance of automation in providing an effective settlement. However, FCA warned that while playing a supportive role, it “will work if companies are not ready for the deadline in October 2027.”
The transition to T+1, which reduces time to finalize securities transactions from a working day to one, recommended by AST and was accepted by the UK government earlier this year. Change aims to reduce the risks of the opposite party and improve market efficiency.
Other judicial states, including the United States, Canada, and Mexico, have adopted T+1, while the European Union plans to move in the same history of the United Kingdom
FCA urged companies to define operational, contractual and budget requirements to ensure a smooth shift, highlighting that the initiative is part of a wider market effort by AST.