T+1 From Intent to Action
Webinar
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The speaker, Hugh Morris, introduced the webinar topic of T+1 settlement, highlighting its profound changes to the UK settlement landscape scheduled for late 2027, aligning with Europe's timeframe. Andrew Douglas, chair of the UK Accelerated Settlement Task Force, provided an update on the project, initiated in 2023 following the Edinburgh reform speech. A draft report with 60 recommendations was consulted with the industry, receiving positive feedback. The final report is expected in January, pending government approval. Douglas emphasized the importance of a collegiate approach, involving over 450 individuals from 116 firms. He noted the alignment of the UK and EU approaches, aiming for a single migration event in 2027. He stressed the need for regulatory support and highlighted the critical role of automation to avoid increased staffing costs, drawing lessons from the US experience. Ian Perham emphasized that T+1 is not just a back-office issue but impacts the front office, potentially affecting costs, service, and reputation. He urged firms to start preparing now, sizing the challenge, reviewing exceptions, and understanding their operating models. He highlighted the need for same-day processing and the importance of data management. Both speakers stressed the need for firms to start planning and implementing changes now to ensure a smooth transition to T+1.
Now that the T+1 Working Group has reported (see UK AST Technical Group Draft Report and Recommendations (kpmg.com), it is time to translate intent to have T+1 in the UK into actions to deliver it. T+1 Settlement for UK securities will go live in Q4 2027. It will be mandatory but that’s 3 years away. What do stakeholders need to do now to prepare?
- What do the UK Regulators need you to do between now and Q4 2027
- What will be happening at an industry level?
- How should you prepare for this?
- Lessons learned from the US move in May this year
- What does the high-level 3-year plan look like?
- How much do you need to do now?
- Risks to consider:
- Scope creep (there is a big regulatory project, it has funding, let’s take this opportunity to fix/implement…)
- Tactical approach resulting in legacy costs (ongoing cost, service, reputational, regulatory impact)
- Europe
- What is the current situation?
- How should you incorporate this in your planning?
Participants will gain insights into immediate actions required in 2024 / 2025 to be ready for the next report in December which will include milestones to Q4 2027. Now is the opportunity to get on the front foot.
Speakers:
Andrew Douglas has spent 35 years in the City working in the post trade space variously at Citibank, Deutsche Bank and Swift. After 13 years working for DTCC as the head of policy for UK, Europe and APAC, Andrew left in early 2023 to start his own advisory business, BlackWater Consultancy Ltd.
Until March of this year when his 3-year term expired, Andrew was Chair of the Data Standards Committee for the Bank of England’s ‘Transforming Data Collection’ initiative.
Today, Andrew is the Chair of the UK Accelerated Settlement taskforce leading the planning of the UK migration to T+1 in 2027. He is also a non-executive director for two financial Fintech companies and a Senior Advisor for Apco Worldwide Financial Services clients in both Brussels and London.
Ian Perham is a senior securities industry practitioner with a 30-year track record of managing and supporting successful delivery across the financial services industry including exchanges, fund managers, wealth managers, investment banks, brokers, custodians, CSDs, banks, building societies and third party providers.
Ian’s work at TORI draws on lots of aspects of his experience including a detailed understanding of front to back processes in both buy and sell side firms, risk management frameworks and processes, common data challenges, reconciliations, common issues causing fails, meaningful and effective controls and MI, and ways to minimise system implementation cost, complexity and risk.
Speaker(s):
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Andrew Douglas
NED/Board advisor/Consultant
BlackWater Consultancy Ltd
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Ian Perham
Senior Consultant
TORI Global
Chairman:
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Hugh Morris
Senior Research Partner
Z/Yen Group