UK – The government has endorsed taskforce recommendations on potential T+1 for the UK
On March 28, 2024, the taskforce asked to examine the possibility of the UK adopting a ‘T+1’ standard settlement period has submitted its report to the government.
The report recommends that the UK should aim to move to T+1 no later than the end of 2027. It also proposes that the UK should engage with other European jurisdictions to explore whether coordinating a move to T+1 is possible. The government has accepted all the recommendations.
Lastly, and in line with the report, the government is establishing a Technical Group of industry experts to take forward the implementation of the UK move to T+1. The objectives are to develop the technical and operational changes necessary for the UK to transition to T+1, and to set out how these should be implemented. The group will also determine the appropriate timeframe for mandating these changes, which should be a date in 2025, and the overall ‘go-live’ date for T+1. The scope of the move to T+1 should be finalised by the Technical Group and could include an appropriate safe harbour mechanism for ETFs and certain other securities that trade in the UK but settle outside the UK.