Regulations

Story: FCA Urges Market Readiness for T+1 Settlement Transition in 2026

By Maheen Hernandez

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The Financial Conduct Authority (FCA) calls for swift action as the Accelerated Settlement Taskforce releases a report on T+1 settlement progress this week.

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The AST report outlines achievements from the past year. Notably, it emphasizes the need for financial institutions to update systems and processes.

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The FCA anticipates full readiness by 2026. However, challenges remain. Some institutions lag in their preparations, raising concerns about potential disruptions.

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No comments have been made by certain key market actors. Their silence leaves questions about their preparedness.

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The shift to T+1 settlement is also expected to bring about operational efficiencies. Market participants are encouraged to invest in technology upgrades to facilitate this…

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Moreover, the FCA has scheduled a series of workshops and forums throughout 2026. These events aim to address concerns and provide guidance on best practices for the T+1…

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Despite the progress, some financial institutions have expressed concerns about the tight timeline.

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Pending approvals from various regulatory bodies remain a critical aspect of the transition process.

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The Accelerated Settlement Taskforce also highlights the need for collaboration among market participants.

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Feedback from industry insiders reveals mixed sentiments. On January 15, a survey conducted by the Association for Financial Markets in Europe (AFME) indicated that 68% of…

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As the deadline approaches, the FCA remains vigilant in its oversight role. Regular audits and compliance checks are in place to monitor progress.

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The Taskforce's report also makes a case for increased transparency in the implementation process.

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The Bank of England has also been involved in discussions regarding the transition to T+1. On January 25, a spokesperson from the central bank noted that they are monitoring the…

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The transition to T+1 settlement is expected to impact trading volumes. Analysts at Barclays have projected a potential increase in daily trading volumes by up to 15% once the…

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Meanwhile, the Investment Association, representing the UK’s investment management industry, has expressed support for the move to T+1.

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