Transition to T+1 Settlement in Europe and Beyond

Shaping the Future of Settlement

SIX and the Transition to T+1

The transition to a T+1 settlement cycle throughout the EU, Switzerland and UK, effective 11 October, 2027, is a significant step toward harmonizing international post-trade processes. Shortening the settlement cycle to one business day improves market efficiency, reduces risk, and bolsters investor confidence.

SIX plays a central role in coordinating this transition across markets in Switzerland, Liechtenstein, Spain, and the broader EU/UK. As a leading financial market infrastructure (FMI), SIX actively contributes to working groups, shares expert insights, and provides the robust infrastructure needed to support a secure and timely shift to T+1.

Achieving full alignment requires close cooperation across the entire industry, an area in which SIX is fully committed to providing support.

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News on T+1
T+1 in Europe
T+1 in Spain
T+1 in Switzerland & LIE
FAQ

How You Will Benefit

Reduced Settlement Risk

With T+1, the time between trade execution and settlement is shortened, leading to less exposure to market volatility and counterparty risk. This means there's less chance of a trade failing due to price fluctuations or one party defaulting on their obligations.

Increased Efficiency

The faster settlement cycle encourages more efficient processing of trades, as it necessitates streamlining operations and potentially automating tasks. This can lead to faster trade matching and allocation, reducing the likelihood of errors and delays.

Enhanced Liquidity

By freeing up capital and securities faster, T+1 settlement can improve market liquidity. Investors have quicker access to their funds and securities, allowing them to participate more readily in trading activities.

News on T+1

Man looking at his SIX iD screen and checking out the latest news to stay informed

Europe

T+1 Timeline for the EU

T+1 in Europe – SIX SIS Global Custody Markets

Proven Expertise in T+1 Operations
SIX has successfully operated on a T+1 settlement cycle in North America, including the United States, since May 2024. Its established processes have run smoothly and efficiently, setting a benchmark for operational excellence. With its long-standing presence in global financial markets, SIX brings exceptional expertise to the T+1 initiative, ensuring a robust and coordinated approach across internal and external operational landscapes.

SECOM as the Backbone
The SECOM system has been real-time since its implementation and serves as the backbone of SIX’s operations, ensuring robust and efficient settlement processes.

Active Collaboration
SIX actively exchanges information with clients, market bodies, custodians, and associations in the respective markets to align efforts and address the complexities of the T+1 transition. This collaboration ensures a coordinated approach across diverse regulatory and operational landscapes.

Decades of International Experience
SIX's long-standing presence in global financial markets provides the necessary expertise for the T+1 initiative, ensuring a robust and coordinated approach across diverse regulatory and operational landscapes.

Ongoing Analysis
SIX has initiated an in-depth analysis of its existing products and services to adapt and optimize them for the T+1 environment and ensure they meet clients' evolving needs.

SIX remains committed to delivering innovative and reliable post-trade solutions, reinforcing its position as a trusted partner in the global financial ecosystem.

For any additional information, please contact your Relationship Manager at SIX.

Spain

T+1 Analysis in the Spanish Market

Under the mandate of the CNMV and the Bank of Spain, SIX has led the establishment of a working group named the ES T+1 Task Force (ES T+1 TF) in Spain.

The group's primary objective is to analyze the impact of transitioning to a T+1 settlement cycle on the Spanish financial community, ensuring that all participants across the value chain are well-informed and adequately prepared for the change.

In addition to its analytical role, the ES T+1 TF functions as a communication and monitoring channel, sharing updates and tracking the progress of various European technical working groups.

To support these objectives, four dedicated workstreams have been established:

Operational Time Table workstream, coordinated by Iberclear, focuses on analyzing the full transaction lifecycle, including trading, matching and confirmation, clearing, and settlement.
Corporate Actions: Also led by Iberclear, this group assesses the impact of the T+1 transition on the management and processing of corporate actions.
Treasury: Coordinated by CECA, this workstream examines the implications for treasury operations, including cash management and foreign exchange (FX) activities.
Asset Management workstream, led by INVERCO, evaluates the effects of the transition on asset management firms and their interactions with other stakeholders in the value chain.

Playbook - Spain Working Group

The four working groups finalized their analysis in June 2025. Based on their findings, BME published a comprehensive playbook in July 2025, summarizing the key outcomes and recommendations for an efficient transition of Spain to the T+1 settlement cycle.

Playbook in English

Playbook in Spanish

Would You like More Information on T+1 in Spain?

Contact Us

Switzerland & Liechtenstein

The Swiss market is subject to self-regulation with the cycle being based on the SIX Exchange Rules.
The main difference between the EU/UK and the Swiss market is that a change in the Swiss market's settlement cycle is not driven by or dependent on Swiss legislation.

The Swiss SPTC is an independent body within the securities industry comprised of representatives from banks, issuers, SwissHoldings, and SIX Securities Services. These institutions provide resources for temporary working groups and task forces as needed.
The Swiss SPTC and its members are involved in post-trade securities matters in the Swiss market and serve as a reliable point of contact.

T+1 Timeline for Switzerland/Liechtenstein

For any additional information on T+1 in Switzerland and Liechtenstein, please contact your Relationship Manager at SIX.

FAQ on T+1 Settlement

What Changes with T+1 Settlement?

Moving from T+2 to T+1 means you have 50% less time for post-trade processing. In fact, according to research by the SWIFT Institute, banks and brokers have roughly 80% less time to manage cross-border settlements under T+1 due to the added complexity of time zone and foreign exchange challenges.

This is something to which you need to pay close attention as more markets move to T+1 settlement.

In May 2024, the U.S., Canada, Mexico, and Argentina each implemented T+1 settlement.

Just as the EU’s transition to T+2 a decade ago triggered other markets to follow suit, the same is happening today with T+1.

In the Americas, Chile, Colombia, and Peru have confirmed that they will transition to T+1 settlement in Q2 of 2027. The EU, UK, and Switzerland have agreed to transition in October 2027.

India, which implemented T+1 in early 2023, introduced a voluntary T+0 settlement cycle in March 2024. Instant settlement could follow in 2025.

What Challenges Does T+1 Settlement Bring?

Although T+1 settlement reduces counterparty risk, it presents challenges, particularly for those using legacy technology.

For example, if you’re trading T+1 securities out of a different time zone, this could lead to complications with FX management.

Securities lending could also be impacted, as firms have less time to recall on-loan securities, which leads to more fails. This problem is exacerbated if you’re based in a different time zone.

Other activities, including allocations and confirmations, as well as asset servicing (e.g., corporate actions), could be impacted by T+1 settlement. Exchange-traded fund processing may also be disrupted, particularly if their underlying portfolios contain a blend of T+1 and T+2 securities.

Settlements involving American depositary receipts and dual-listed securities are also affected.

If you or your counterpart rely on manual processes, the transition to T+1 settlement could pose difficulties and risks. With less time to complete post-trade operations under T+1, back- and middle-office staff can no longer rely on email or fax.

What Steps Are Needed to Prepare for T+1 Implementation?

1. Assessment of Current Processes
Firms should conduct a comprehensive review of front-to-back trade processing. This review should include the following:

Trade execution and confirmation: Ensure that trades are executed, matched, and confirmed quickly to align with the shorter settlement cycle.
Clearing and settlement operations: Adjust operational workflows to accommodate T+1, including trade affirmation and allocation processes.
Custody and asset servicing: Ensure that custodian banks can support T+1 settlement and adapt to changes in corporate actions and reconciliations.
Collateral and margin management: Assess the impact on collateral movements and margin calls due to the reduced settlement timeframe.

2. Upgrade IT systems
Ensure internal systems can handle the shortened settlement cycle, and implement the necessary technology updates.

Real-time trade processing capabilities;
Automated trade matching and affirmation systems.
Enhancements to post-trade reconciliation and reporting

3. Staff and internal organization
Ensure that staff can perform activities within the new timeframe. Evaluate whether the internal organization needs to be reviewed and improved. Provide staff with training on the new T+1 procedures and timelines, focusing on:

Compliance teams adapting to new requirements;
Operations teams should streamline trade matching and settlement processes.
Portfolio managers adjusting execution strategies to ensure liquidity, for example.

4. Coordinate with counterparties and service providers
Ensure that they are able to perform their activities within the new timeframe. Evaluate whether working arrangements with external parties need to be changed.

Work closely with brokers, custodian banks, and financial market infrastructures to ensure readiness for T+1.
Review service-level agreements to align them with the requirements of faster trade settlement.

5. Manage liquidity

Adjust cash management strategies to accommodate faster settlement obligations.
Ensure that the funding and treasury teams have processes in place for accurate cash forecasting.

What Is the Role of UTI?

Automation is essential for navigating the transition to T+1 settlement and ensuring the timely and accurate exchange of data between counterparties.
This is why more firms are adopting the Unique Transaction Identifier (UTI).

UTIs are ISO message standards used by services like Swift Securities View, which enable firms to track transactions throughout their lifecycle.

With end-to-end tracking, firms can proactively detect and manage settlement discrepancies, resolving problems before they occur and avoiding costly settlement failures.

While existing technologies can support processes in a T+1 context, automation is necessary throughout the chain for this to work.

What is the UTI, and what is its value in securities settlement?