Summary

• While the United States and a select few countries have already made the move, the UK, Switzerland, and the rest of Europe are set to transition to T+1 settlement in October 2027.
• For asset managers and asset owners not yet operating in a T+1 environment, this will be a significant change in workflow due to the loss of operating time between security trades and settlement.
• For the transition, FX is still likely to be one of the main pressure points. The FX aspect of any security trade may need expediting under T+1, with Europe’s multi-jurisdiction operational environment making cut-offs and post-trade coordination even more complex.
• Regardless of if teams are already managing T+1 as part of their current workflow, the October 2027 transition makes it an opportune time to revisit managers, custodians, settlement agents and FX providers to decide whether each part of the workflow is still fit for purpose.

While the move to T+1 is often described as a market structure reform, for asset managers and asset owners, it becomes a true litmus test of current operating models. The Investment Association, the UK Asset Management industry body, notes that

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