UK, EU and Switzerland Detail One-Day Settlement Testing

The United Kingdom, the European Union, and Switzerland have established a coordinated testing framework to facilitate the transition to a one-day settlement cycle (T+1) for financial trades. Industry-led committees issued the joint plan on Wednesday to banks, brokers, and asset managers, marking a significant step toward the scheduled migration on October 11, 2027. To ensure operational readiness, financial market infrastructure firms including EURONEXT NV, Euroclear, and Clearstream have been encouraged to make their systems available for testing across five distinct windows during 2027. The first of these testing periods is slated to take place between February 1 and February 12, 2027. The development of this testing roadmap involved extensive consultation with more than 50 major market participants. Notable institutions involved in the process include JPMorgan Chase & Co., BlackRock, Inc., Morgan Stanley, Barclays PLC, and UBS Group AG. This coordinated effort follows the precedent set by the United States and Canada, both of which successfully migrated to a T+1 settlement cycle in 2024. The shift is intended to reduce settlement risk, lower margin requirements, and enhance liquidity across international capital markets.