UK can avoid US' T+1 implementation errors by prioritising 'key' automation

Faster settlement needed

As the UK and EU move closer to the deadline for T+1 implementation in October 2027, it is important to look at the US’ work on the same cause and compare notes.

Speaking to Investment Week, Andrew Douglas, chair of the UK Accelerated Settlement Taskforce (AST) which is overseeing the regulatory change, said: "The biggest lesson is that automation is the key to success." He explained that the US tried to "throw people at [the task]" which led to a sharp increase in staffing costs, which is "not sustainable in the long term". The US transitioned to a T+1 settlement cycle on 28 May last year. The process means that most securities transactions in the US now settle one business day after the trade date, rather than the previous two-day (T+2) cycl...