Capital markets – HM Treasury consults on legislation to move to T+1 settlement cycle

HM Treasury has published a draft Statutory Instrument (SI) and related policy note to make T+1 (one business day after trade) the standard settlement cycle for securities trades in the UK from 11 October 2027.

The UK currently requires securities trades to settle by T+2 (two business days after trade). The change to T+1 aligns with global moves toward faster settlement and is being overseen by the industry-led Accelerated Settlement Taskforce.

The draft SI will amend the UK Central Securities Depositories Regulation to require settlement by T+1 from 11 October 2027.

The Financial Conduct Authority is responsible for ensuring that the T+1 requirement is applied by trading venues and securities settlement system participants. It has published a letter to compliance officers of asset management and alternative firms to encourage them to review their operational processes and technology to ensure compliance with T+1 by the implementation date in October 2027.

The consultation on the draft SI closes on 27 February 2026, and the final SI will be laid before parliament ahead of the implementation date.