EU, UK and Switzerland issue T+1 testing plan ahead of joint move on 11 October 2027

EU, UK and Switzerland issue T+1 testing plan ahead of joint move on 11 October 2027

EU, UK and Switzerland issue T+1 testing plan ahead of joint move on 11 October 2027

The European Union, the United Kingdom, and Switzerland have jointly released a detailed testing plan for the introduction of a T+1 settlement cycle, marking a significant step towards the implementation of the new timeline on 11 October 2027. In collaboration, the EU T+1 Industry Committee (IC), UK Accelerated Settlement Taskforce (AST) and Swiss Securities Post-Trade Council (swissSPTC) have outlined logistics and timelines, testing touchpoints and scenarios, and are encouraging firms to analyse their own metrics in order to de-risk the European transition to T+1.

Background & Context

The move to a T+1 settlement cycle, which involves settling trades on the same day they are executed, is a major overhaul of the current T+2 (two business days) timeline. The EU, UK, and Switzerland have been working together to ensure a harmonized approach to the transition, which is expected to bring significant benefits to the market, including reduced counterparty risk and increased liquidity. The testing plan is a critical component of the transition, as it will help firms identify and address potential issues before the new timeline is implemented.

Impact on Swiss SMEs & Finance

The introduction of T+1 will have a significant impact on Swiss SMEs and the broader financial market. Smaller firms may struggle to adapt to the new timeline, particularly if they are not well-equipped to handle the increased volume of trades. However, the Swiss Securities Post-Trade Council (swissSPTC) has been working closely with industry stakeholders to provide guidance and support throughout the transition process. Investors and market participants should also be aware of the potential risks and opportunities associated with the transition, and take steps to de-risk their operations and capitalize on the benefits of T+1.

What to Watch

The testing plan is a critical milestone in the transition to T+1, and firms should closely monitor the progress of testing and scenario analysis. Key areas to watch include the identification of potential issues, the development of mitigation strategies, and the implementation of necessary system changes. The EU, UK, and Switzerland will also continue to work together to ensure a harmonized approach to the transition, and market participants should be prepared for any changes or updates that may arise in the coming months.

Source

Original Article: EU, UK and Switzerland issue T+1 testing plan ahead of joint move on 11 October 2027

Published: March 26, 2026

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed financial advisor before making investment decisions.