The UK moves to T+1 settlement in 2027.
This is a regulatory project that will force firms to change to support same-day processing. This impacts speed and resilience. Batch processes and controls need to become near real-time, exceptions need to be identified and addressed quickly, and manual processes need to be automated.
Successful T+1 settlement needs, by midnight on Trade Date:
- Settlement instructions matched
- Cash in place – which may include a separate FX trade
- Securities in place – which may require depot realignment or stock loan recall
All post-trade operations need to support this timeframe: client static set-up and maintenance, trade/allocation booking, confirmation, settlement instruction and matching, liquidity and cash management, etc.

People need to be working effectively, with roles in the right locations with the right levels of skill, experience and oversight and control. Processes need to be near 100% STP, with paper and manual processing removed. Both need to be resilient, and effective, automated near real-time controls need to replace current overnight batch and next day exception processes.
This isn’t going to be easy. Challenges include:
- Identifying and managing exceptions without fully automated end-to-end business processes
- Dependencies on end of day / batch processing to get information (both own and counterparties / suppliers)
- The need for intraday controls to recognise and support cancels and amends
- The need for enhanced data delivery mechanisms and protocols to support multiple, intraday deliveries
- The need for a consolidated view across multiple systems, custodians, counterparties, etc. This includes linked but separate activities (securities trade, FX trade, stock loan return, etc)
- Ensuring compliance with regulatory obligations including reporting and processing penalties and other costs
- Understanding and managing costs, potentially at client level
We think there are three lenses that firms should be considering now:
Building blocks – the enablers for same day, near real time processing and control (Data Sourcing, Data Integrity, Data Cleanliness, and Data Security (Cyber)
Bottlenecks in current processes – where should the focus be, what can’t just be done faster, and why not?
Resilience – there is much less time to address issues, where do prevention, identification, and resolution need to improve?
We suggest that firms should be looking at these now to get a structured, quantified view of the areas that won’t be an issue for same day processing, those that can be addressed by behavioural or procedural change, and those that will need significant change to address.
For the building blocks / enablers needed for same day processing and control
- Data sourcing: are system sources and owners known, are there processes for meeting the requirements for new data outputs, are the required new delivery mechanisms available?
- Data integrity: is data consistent across systems, is the speed at which it is disseminated good enough for same day processing?
- Data cleanliness: is data accurate and complete?
- Data security (including cyber): do current data security controls recognise and can support the new demands for T+1?
For bottlenecks in current processes (where should the focus be, what can’t just be done faster and why not?)
- What is the scope of products and services that will be impacted by T+1 settlement
- How well are the end-to-end processes understood and mapped, in particular sources of information (core and non-core sources, internal and external sources, manual and automated) and timings
- What are the current problems with source data, including number, timing and time to fix (receiving the data and preparing it for use)
- What are the issues with processing the data? How many exceptions, how much time and effort does it take to resolve them? What are the dependencies and are they internal within the department, external within the organisation, or 3rd party?
For resilience, recognising that there is much less time to address issues
- Where do prevention, identification, and resolution need to improve?
- What work has been done to meet the regulatory Operational Resilience and DORA requirements?
- How can this be leveraged for T+1 same day processing?
TORI is a specialist financial services consultancy with people who are all experienced practitioners. It has a deep understanding of market participants’ businesses, including their products and services, client types, front to back flows, infrastructure, 3rd party providers, and regulatory obligations. It has a long track record of providing innovative and effective solutions.
TORI works extensively with firms to support them with Digital and Data Transformation, Operational Excellence, and Governance Risk and Compliance.
Please contact Ian Perham if you would like more information.