Sasha Mills

Speaking at the launch event for the UK’s T+1 transition today, Mills highlights how a shorter settlement cycle will mean that firms and central counterparties face lower counterparty risks, which the BoE anticipate will lead to “significant amounts of margin being released by CCPs to members and their clients”. 

Explaining the £1 billion figure, the BoE said the estimate relates to margin posted to support UK cash equities clearing and applies the approximate margin reductions seen in another jurisdiction which has transitioned to T+1 from T+2. 

Mills noted the amount was “a significant sum which could be used by market participants for other productive purposes, supporting the UK economy”. 

In a speech to an audience at the UK Accelerated Settlement Taskforce event The T+1 Journey Starts Now Mills voiced the BoE’s support for the transition to T+1, noting it should reduce the costs and risks associated with the existing misalignment of settlement cycles and ensure alignment with the US. 

“The transition to T+1 should catalyse firms’ investment in automation and standardisation, leading to lower settlement costs in the medium term and more efficient markets,” she added. 

The UK will move to T+1 on 11 October 2027, in line with the EU and Switzerland. 

James Pike, chief revenue officer at Taskize, commented: “If everything runs smoothly from an operational preparation perspective, the release of £1 billion is a tangible reality. However, the challenge currently lies in ensuring a successful migration by October 2027. Firms must act early to review and adapt their post-trade operations to ensure a seamless transition. This will require huge investment in technology and process reengineering, not to mention close collaboration between industry banks, custodians, and fund managers. The lessons learned from the US shift to T+1 earlier this year highlight the importance of preparation and coordination.”

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Following this, the UK’s Financial Conduct Authority (FCA) has welcomed the recommendations, alongside the Government and the Bank of England.   

The FCA stated that it supports the transition to T+1 settlement in UK markets and calls on the industry to engage and start planning as soon as possible.   

“We highlighted how the move to T+1 will make our markets more efficient and support growth in our recent letter to the Prime Minister. We will support industry as they move to T+1 and expect firms to engage and plan early,” said Nikhil Rathi, chief executive at the FCA. 

The plan published by the AST includes a Code of Conduct for market participants, confirming that 11 October 2027 will be the first trading date in UK cash equities for settlement on a T+1 cycle; aligning with the European Union and Switzerland.  

Elsewhere in its report, the AST included five behavioural commitments including a push for automation in SSIs, corporate actions, stock lending recalls, and a focus on ‘action this day’ urging firms to begin planning and where practicable, immediate implementation.  

Read more: UK taskforce publishes blueprint for T+1 transition  

At the time of publication of the report, Andrew Douglas, chair of the UK T+1 AST, said: “This is a milestone in the UK’s journey to T+1 settlement and reflects a substantial amount of work and co-operation across the industry.  

“We have a date and a detailed plan for the way ahead. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026.  Automation will be a key component of a successful implementation.”  

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Tomiyasu joins LSEG from Morgan Stanley MUFG Securities, where he most recently served as managing director, head of final investment decision (FID) risk for Asia.   

Elsewhere during his tenure at Morgan Stanley, Tomiyasu served as COO/front risk, Japan FID, and counterparty risk management, APAC FID.  

Before joining Morgan Stanley, he held positions spanning risk, technology and sales at the Development Bank of Japan.  

“We are delighted to welcome Hiroki Tomiyasu to LSEG. The experience and knowledge he brings to the role will help us drive further growth across our multi-asset class offering and, in partnership with our customers, deliver new products and services,” said Daniel Maguire, group head, LSEG Markets, and chief executive of LCH Group. 

Read more: LSEG appoints new chief executive of LCH Limited  

As part of the role, Tomiyasu will report to both Rohit Verma, head of post-trade, APAC, and Andrew Williams, global head of post-trade solutions. 

According to the exchange, this newly created position will help reinforce its commitment to servicing Japan and APAC’s markets, allowing customers to benefit from risk management solutions and capital, margin and operational efficiencies.   

“It is a great opportunity to join LSEG at this exciting time, and to work together with teams in Japan and across APAC as we expand our capabilities across the region,” said Tomiyasu. 

“I look forward to partnering with our clients and members, and the markets that we serve, as we look to drive new levels of capital, margin and operational efficiency.” 

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This initiative, led by the Bank of England and the Financial Conduct Authority, explores emerging technologies in digital securities issuance, trading and settlement within a controlled regulatory setting. Participants need to adhere to a temporarily adjusted framework that promotes innovation while ensuring financial stability and market integrity. 

Chris Elms, chief executive officer, Euroclear UI, said: “We innovate to bring connections to financial markets, and by participating in the DSS, we believe we can make a connection between the markets of the present and the digital and data-enabled markets of the future. 

“We recognise the potential of DLT to transform securities transactions and this work dovetails with the Government’s overall strategy to advance digital infrastructure across financial markets.” 

The DSS aims to encourage innovation by promotion the development of secure and efficient financial systems. It also seeks to maintain financial stability by ensuring that the expansion of digital financial activities does not introduce systemic risks. At the same time, it aims to uphold the integrity as well as the transparency of UK financial markets. 

Elms added: “As the central depository for the UK’s securities issuance, we look forward to continuing to bring the world-class, institutional-grade infrastructure commensurate with the systemic importance of these markets to the UK economy.” 

Euroclear said it has already facilitated digital ledger-based securities issuance through its D-FMI platform, including the issuance of a €100 million digital native note by the World Bank and a $500 million programme with the Asian Infrastructure Investment Bank. 

By taking part in the DSS, EUI aims to support the evolution of digital financial infrastructure in the UK. As the country’s central securities depository (CSD), EUI plays a key role in market operations, settling nearly £1 trillion in transactions daily and holding approximately £5 trillion of the £40 trillion in assets under custody within the Euroclear Group.    

Jorgen Ouaknine, group head of innovation and digital assets, Euroclear, said: “Our work in the UK will leverage the Euroclear Group’s capabilities and international expertise, including in the issuance, distribution and settlement of digital assets under English securities law.” 

Ouaknine added: “The UK’s international financial centre is of strategic important to Euroclear and our global clients – building the next generation of resilient and efficient market infrastructure in London is a strategic imperative.” 

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Anthony Attia

The development comes as part of Euronext’s plan to expand its Italian repo clearing franchise to a wider range of European government bonds.  

As part of the move, Euronext Clearing will use Euroclear as its first triparty agent to allow for improved collateral management capabilities.  

Through the use of Euroclear’s solutions, Euronext Clearing will provide clients with automated and flexible collateral solutions, helping to improve operational efficiency and margin and balance sheet optimisation.  

Euroclear will operate as an independent third party, managing the selection, valuation and substitution of collateral, ensuring that it meets eligibility criteria. 

In addition, Euroclear will handle settlement and custody, provide regular reporting and ensure regulatory compliance, with the aim of allowing clients to benefit from improved liquidity management and a reduction in burdens associated with administration.  

“This partnership marks a significant milestone in Euronext’s ‘Innovate for Growth 2027’ strategy, reinforcing Euronext Clearing’s role as a cornerstone of the group’s broader strategic ambitions,” said Anthony Attia, global head of derivatives and post-trade at Euronext.  

“It demonstrates our commitment to delivering best-in-class clearing and collateral management solutions for our clients.” 

Collaborating with Euroclear will come as part of the release of Euronext’s new repo clearing offering in June 2025, enabling the onboarding of clients with an updated risk framework.  

The firms added that clients will be able to use Euroclear as a triparty agent for repo clearing. 

Read more: Euronext bolsters European derivatives offering with German, Irish and Portuguese single stock options 

“Strengthening collaboration between market players is crucial for growth and stability in European capital markets,” said Marjie Verhelst, head of product strategy and collateral management and securities lending at Euroclear. “This initiative highlights the vital role of our global and neutral infrastructure in helping our clients optimise their collateral allocation, reducing fails and credit usage, and increasing flexibility and predictability for dealers.” 

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The plan includes a Code of Conduct for market participants, which confirms 11 October 2027 will be the first trading date in UK cash equities for settlement on a T+1 cycle – in line with the European Union and Switzerland. 

Within the blueprint is a clearly defined scope, 12 critical operational actions and 26 highly recommended actions.  

In addition, there are five behavioural commitments including a push for automation in SSIs, corporate actions, stock lending recalls, and a focus on ‘action this day’ urging firms to begin planning and where practicable, immediate implementation. 

The implementation plan has the support of the public authorities including government (HMT), Financial Conduct Authority (FCA), and the Bank of England.     

Primary regulation, UK CSDR, will be amended to reflect that T+1 will be mandatory from 11 October 2027.  

Andrew Douglas, chair of the UK T+1 AST, said: “This is a milestone in the UK’s journey to T+1 settlement and reflects a substantial amount of work and co-operation across the industry. We have a date and a detailed plan for the way ahead. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026.  Automation will be a key component of a successful implementation.” 

An online and in-person event for market participants will be held on 20 February, to provide an opportunity for market participants to hear speakers from the AST detail the critical recommendations made in the Implementation Plan, HM Treasury, the Bank of England and the FCA offer their thoughts on the plan, and to hear a live discussion amongst firms who have already begun to plan their own journey to T+1. Market participants can register here. 

Euroclear is supporting the UK T+1 Accelerated Settlement work with programme management and industry engagement support, allowing the taskforce to continue to operate through to October 2027.   

Chris Elms, CEO of Euroclear UK & International, commented: “We are committed to supporting the UK market through every stage of this transformation, working with stakeholders to ensure a smooth journey to T+1. 

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Quentin Limouzi

In his new role, Limouzi is set to focus on supporting Broadridge’s clients with global regulatory developments and future technological innovations.

He most recently served as global head of investment management and execution solutions, and also previously headed up global buy-side trading for Refinitiv, among other roles.  

Vijay Mayadas, president of capital markets at Broadridge, said: “With increasing trading velocity, faster settlement cycles, and the acceleration of AI and advanced analytics across the trade lifecycle, our leading post-trade platforms are uniquely positioned to enable capital markets firms to transform and simplify through global, multi-asset class, modular solutions.

“With Quentin’s leadership and market expertise, we can continue to deliver the solutions our clients need to operate, innovate and grow.” 

The appointment follows Broadridge’s recently announced GenAI-powered analytics offering as part of its OpsGPT platform, aimed at enhancing its post-trade operations.

Read more: Broadridge adds GenAI-powered analytics to improve multi-asset post-trade processing

Limouzi’s previous roles include stints as head of execution sales, APAC at HSBC Global Banking and Markets and executive director, head of electronic and algorithmic trading, Asia at BNP Paribas.

He has also previously served at firms including: Redi, TradingScreen, and Deutsche Bank.

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“The agreement we have established with Delta Capita opens up new opportunities for us to enhance our derivative post-trade services for our valued clients,” said Karen Everingham, head of markets and securities services operations at HSBC.

Delta Capita has also expanded its operational footprint through the establishment of hubs in Kuala Lumpur and Manila, helping to allow for 24/7 support for its clients worldwide.

In addition, Delta Capita stated that by standardising post-trade processes and helping to reduce industry costs, this approach also seeks to address complex regulatory requirements. 

“We are delighted to have been appointed by HSBC to provide operational services,” said Joe Channer, chief executive at Delta Capita.

“This collaboration reflects our expertise in delivering cost-efficient, scalable post-trade solutions and reaffirms our commitment to driving innovation in financial services.”

The move follows previous developments from Delta Capita, including the acquisition of LSEG’s CLM technology, as well as the launch of its MACH Distributed Ledger product suite, which offers capital markets blockchain software.

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Andrew Douglas

Despite the UK being the first to tout the date for transition, the EU and Switzerland both confirmed the date in recent months, with the UK – as expected – now mirroring the day which the shortened settlement cycle will come into force. 

The taskforce is now set to reveal final recommendations and implementation plan will be published at the start of February which will contain a roadmap for participants to follow for a smooth transition.

The chief recommendations will be around automation and compliance, along with a series of critical and highly recommended actions. 

In a bid to stop last minute scrambling among firms, the taskforce is likely to outline a three-year roadmap which will see planning and budgeting in year one, building and implementation in 2026 and testing and go-live the year of the move. 

The taskforce – which was set to disband upon the publication of the recommendations – has now been funded to continue its work all the way through to October 2027. 

Speaking to Global Custodian last year, Andrew Douglas, chairman of the UK Accelerated Settlement Taskforce, highlighted how around 5% of trades are already settling on a T+1 basis on Euroclear’s CREST. 

In a follow up conversation last week Douglas explained that the taskforce will recommend the recording of information in the build-up to October 2027 so that progress can be measured: 

“If you can’t measure it, you can’t manage it,” he said. “And that goes for the regulators, but it also goes for the participants. So I think it would be helpful for them to know as well.” 

Whether that information would be made public has not been confirmed.

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The new governance structure has been developed to oversee and manage the operational, regulatory and technological elements of the transition.

Due to the ‘significant’ interconnectedness within the EU capital market, a coordinated approach across the EU, involving authorities, market participants, financial market infrastructures and investors, is desirable, according to the watchdogs.

Among the key elements the governance model seeks to establish is an industry committee, made up of senior leaders and representatives from market players.

This committee will be chaired by Giovanni Sabatini, who has previously served as a member of the European Economic and Social Committee and held roles within International Organisation of Securities Commissions (IOSCO), European Banking Federation (EBF) and European Central Securities Depositories Association (ECSDA).

The governance model also seeks to establish various technical workstreams, focused on the technological adaptations needed to accommodate the transition to T+1.

The watchdogs added that two more general workstreams will also be established to review the scope and the legal and regulatory aspects of these adaptations.

Lastly, a coordination committee will be established, chaired by ESMA and with representation from the EC, the ECB and the chair of the industry committee.

This committee will be tasked with ensuring coordination between the authorities and the industry, advising on any issue that may occur during the transition.

The first meeting of the coordination committee is scheduled for 6 February.

ESMA has suggested 11 October 2027 as the optimal date for the transition to T+1 in the EU, aligning with the UK’s proposed switch and today, 23 January, Switzerland also announced plans to move to T+1 in October 2017, with the date now being a consensus between the EU, Switzerland and the UK.

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