The journey continues

The next batch of T+1 transitions is on the horizon in Europe

Our industry’s T+1 transition is only just beginning. T+1 is operational in North America, and now it’s Europe’s turn.

In Europe, specifically the EU, UK, and Switzerland, regulators and industry taskforces (such as the EU T+1 Industry Committee and the UK T+1 Taskforce) are targeting a coordinated October 2027 transition for T+1.

Across Europe, efforts are underway to achieve better alignment in areas such as corporate action processing timelines, cross-border harmonisation across Central Securities Depositories (CSDs), and collateral/ FX readiness.

While Europe benefits from having a relatively mature infrastructure framework, regional complexity, e.g. fragmented regulations and a complex financial market infrastructure ecosystem, is frustrating some of these efforts.

A recent report by Firebrand Research outlines just how costly and complex Europe’s T+1 transition will be. The study estimates that leading custodians may each invest up to $36 million to prepare for T+1—more than double the $13.3 million average spent for the North American transition. These costs encompass staffing, technology enhancements, internal testing, and client engagement efforts. A central takeaway is that greater investment in post-trade automation will be critical to ensuring Europe’s successful move to T+1 settlement.

Asia-Pacific is not far behind on T+1

Progress on accelerated settlement cycles is underway in Asia-Pacific too.

India was the first major market to implement T+1, and now the country is progressing towards T+0, although its longer-term goal is to achieve instant settlements. Other Asia-Pacific markets, such as Singapore, Hong Kong, Australia, and Japan, are either consulting, running pilots, or evaluating system-wide readiness on T+1.

Asia-Pacific is facing some difficult headwinds with T+1, however. Currency restrictions, capital controls, and diverse regulatory frameworks could limit same-day liquidity and complicate cross-border funding. This might lead to delays in aligning FX and settlement timelines.

Addressing these issues will be integral if Asia-Pacific firms are to navigate T+1.

Additionally, as cross-border investment volumes accelerate between Asian and Western markets, consensus on settlement timings, funding flexibility, and end-to-end transparency will become more critical.

How Swift can help you realise your T+1 potential

Swift is well-positioned to support the industry’s T+1 efforts and will continue to assist the community by offering transparent data, collaborative infrastructure, and the global standards needed to move confidently into the future of T+1.

Our community is collaborating on the adoption of a shared Unique Transaction Identifier (UTI) reference among settlement parties and providing access to automated tracking for all participants on either side of a transaction. This will drive consensus to resolve discrepancies faster, reduce operational complexity, and mitigate settlement risk.

As we move toward shortened settlement cycles, cohesive and collaborative action is essential. Collective industry action is key to unlocking greater efficiency, transparency, and automation, paving the way for a smooth and successful transition to T+1 and beyond.