The global shift to faster finance exposes WealthTech’s readiness gap

By Puja Sharma

New data reveals that preparations are underway for the UK’s move to T+1 settlement, with 60% of firms set to meet key 2026 confirmation deadlines.

With the UK’s  October 2027 T+1 implementation deadline fast approaching,  a new UK T+1 Pulse Survey from The ValueExchange, led by the UK Accelerated Settlement Taskforce and sponsored by Euroclear and The Depository Trust & Clearing Corporation (DTCC), found that strong progress is being made to ensure readiness for the UK’s move to T+1 settlement, with 95% of firms now preparing for the transition. In addition, 60% of surveyed firms expect to hit key T+0 confirmation deadlines in 2026.

T+1 settlement means trades must fully clear—money and shares exchanged—by the next working day instead of two. The UK is gearing up for this faster cycle, and new data shows most firms are on track to meet the first major 2026 deadlines, though operational readiness still varies across the ecosystem.

Preparation for T+1 has improved since early 2025, but major gaps remain. Fewer than one-third of firms trust their vendors will meet the new requirements, and investor confidence is especially low. Heavy reliance on clients, custodians, and CSDs is creating bottlenecks, with impact scores showing UK brokers and North American players feeling the most pressure.

“We’ve seen strong engagement from the industry ahead of the UK’s transition to T+1, and we’re now urging firms to take a proactive stance,” said Andrew Douglas, Chair of the UK Accelerated Settlement Taskforce. “That means benchmarking your readiness against peers, accelerating automation and testing in high-risk post-trade areas, and working closely with service providers to align timelines and processes. Investing in automated trade matching tools and improving SSI databases will also be crucial for navigating the complexities of T+1. The earlier firms start, the better positioned they’ll be to transition smoothly and capture the long-term benefits of faster settlement.”

“As a global market infrastructure, DTCC is committed working closely with UK market participants to ensure a smooth, resilient, and harmonised move to a T+1 settlement cycle, drawing on the experience and insights we gained in leading North America’s move to T+1 in 2024,” said Val Wotton, Managing Director and Global Head of Equities Solutions at DTCC. “The UK T+1 Pulse Survey results demonstrate the industry’s strong momentum, but also highlight the need for continued collaboration and investment in automation, operational readiness, and ecosystem-wide alignment. Together, we can help deliver the benefits of a shorter settlement cycle, including reduced risk, improved efficiency, and enhanced market competitiveness for all participants.”

“Our role as secretariat to the UK Accelerated Settlement Taskforce, is to support both the Taskforce and the broader market in the shift to T+1,” said Chris Elms, CEO of Euroclear UK & International. “We’re not just facilitating T+1 delivery, but we’re strengthening and future-proofing the UK’s financial ecosystem. Efficient securities markets are essential to fostering prosperity among companies, governments, and investors, the very purpose of the financial sector. As a critical infrastructure, we are dedicated to collaborating with all stakeholders for a synchronised UK transition, harmonised with the EU and Switzerland, modernising our markets to meet evolving global standards.”

The UK’s Accelerated Settlement Taskforce has set key transition milestones through 2026–2027, including mandatory T+0 allocations and confirmations by December 2026 and full compliance with T+1 settlement by 11 October 2027.

The survey highlights several practical priorities for firms seeking to stay on track for the 2027 implementation:

• Assess budget and resource allocation: 62% of firms expect to implement T+1 for under $500k, while 4% will spend more than $5 million, but cost underestimation remains a risk for complex operations.
• Accelerate internal automation: Over 75% of brokers plan to increase automation in securities lending, standing settlement instructions (SSIs), and corporate actions. Firms that haven’t started should focus here first.
• Engage counterparties early: With 62% citing third-party dependencies on clients and counterparties as critical, collaboration and testing across the ecosystem are key.
• Update fund dealing cycles and processes: 85% of fund managers plan to change dealing cycles because of T+1; firms need to ensure their front-to-back workflows align.
• Invest in people and process training: With most efforts focused on technology, operational readiness and staff enablement must keep pace.