Euroclear's Chris Elms: What T+1 settlement means for investors

'A pivotal shift'

Financial markets worldwide are modernising by dematerialising share certificates, digitising and automating processes, and settling trades more quickly to improve efficiency.

On 28 May, the US made a major move, shortening its securities settlement cycle from T+2 to T+1. The transition went more smoothly than some expected and after resolving a few teething problems, the market has seen settlement efficiency on par with normal levels. In the UK, Charlie Geffen's Accelerated Settlement Taskforce recommended that the country adopt a two-phase approach with operational changes gearing up in 2025 and a full transition by the end of 2027. Deep Dive: US move to T+1 for ETFs will require 'synchronisation' from foreign markets The taskforce has also underlin...