HM Treasury (HMT) has published a response to UK's Accelerated Settlement Taskforce (AST) report recommending a plan for the UK to move to a T+1 settlement cycle for securities trades. HMT accepts the recommendation of 12 'critical' and 26 'highly recommended' actions to facilitate a successful transition to T+1 and will introduce legislation making this change. HMT further accepts the recommendation of T+1 coming into effect on Monday 11 October 2027 and will legislate for T+1 to be mandatory from this date forward. On this basis, firms should now begin preparations for 11 October 2027 to be the first day of trading under a T+1 standard. HMT is engaging with European partners to support aligning this outcome with the EU markets.
In addition, HMT has also published a policy paper on the Terms of Reference of the Accelerated Settlement Taskforce, confirming that they have accepted all recommendations made and to update the objectives and governance structure of the Taskforce as it moves into the next phase of its work. HMT also published a press release on the move to T+1 and the broader UK growth and competitiveness agenda.
