The countdown is on to T 1. Here’s everything your firm needs to know to get prepared, writes Andrew Douglas

Saturday marked exactly two years until the UK will join the global T 1 club, shortening its securities settlement cycle from two days (T 2) to one (T 1), on 11 October 2027.

This move requires preparation and collaboration across the investment industry because it affects all market participants. And with the UK, EU and Swiss deadlines for T 1 aligned, the foundations laid now will be critical to delivering a smooth transition across the whole of Europe.

The transition to T 1 is not only a technical, and in some cases behavioural change, but a strategic reform that will play an important role in modernising UK markets in line with the government’s Mansion House agenda, which aims to boost investment, unlock efficiency and strengthen the UK’s competitiveness. It is also a gateway to the broader digitalisation agenda.

Faster settlement will reduce counterparty and liquidity risk, free up capital, and make our markets more efficient and resilient. But these benefits will only accrue if preparation moves from planning to execution in line with the broader market deadline.

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