When I look at the calendar and realise we are now less than 18 months from European markets moving to T+1 settlement, I’m excited that momentum continues to build towards this landmark moment. However, there is still a lot of work to be done between now and October 2027.
This Isn't a Copy-and-Paste of US T+1
There's a temptation to look at the US T+1 transition in 2024 (which went very smoothly) and assume we can follow the same playbook. This is not an apples-to-apples comparison.
The EU alone spans 27 jurisdictions. Twenty-seven different legal frameworks, market conventions, infrastructure setups and operational rhythms. Add in the UK, Switzerland and Liechtenstein and you've got a complex patchwork of post-trade environments that all need to arrive at the same destination on the same day. Cross-border settlement, inventory management and funding transparency all get harder and more complex when you're working across that level of fragmentation.
Same-Day Matching: Where the Rubber Meets the Road
As markets move to T+1 settlement, one of the clearest signals of post trade efficiency is the ability of market participants to agree – or ‘match’ – the details of a transaction on the day it is executed. When trades are matched on trade date, they can flow cleanly into settlement, reducing operational friction and helping firms meet increasingly compressed settlement deadlines with confidence.
I’m encouraged by the progress we’re seeing. Our internal analysis of Q1 2026 same-day match rates for Equities across the top 10 volume markets in Europe showed an average same-day match rate of 98% for trades processed in DTCC’s trade matching platform, CTM®. This is a marked increase from 92% in 2024. Although fixed income markets lag behind due to the challenges caused by more complex settlement workflows, we have seen similar improvements in same-day match rates for debt transactions. To me, this demonstrates that firms investing in automated trade processing solutions are ready for T+1 and building more resilient post trade processes.
Visit dtcc.com to see same-day match rates by market and security type and benchmark your own operational readiness for T+1. By proactively identifying opportunities to improve trade matching efficiency, you’ll be well positioned to understand which parts of your workflow need to be optimised and drive improvement before October 2027.
Collaboration Isn't Optional
One thing I've noticed in conversations across the industry is that firms sometimes approach T+1 readiness as a solo project. It isn't. Custodians, brokers and financial market infrastructure need to collectively analyse their readiness, how their workflows connect and identify where the issues are. Eighteen months is enough time to get this right. But we need to start preparing now.
In our recent webinar, T+1 in Europe: De-Risking the Transition, insights on where the industry stands were surfaced. Interactive pulse polls conducted during the session revealed that roughly 70% of respondents view Europe's T+1 transition as somewhat or significantly more complex than other markets. A separate poll showed that most firms are still in the early stages of their readiness journey, focused on assessment rather than execution. Together, these findings underscore a clear message: firms need to move with greater urgency and make this transition a success.
The firms that will look back on this transition proudly are the ones focused on de-risking the transition now: cleaning up their data, stress-testing their matching workflows, optimizing their post-trade processes and collaborating with their counterparties.
Watch the webinar replay to hear practical steps firms should be taking now to move from awareness to action.
T+1 isn't just a shorter settlement cycle. Done well, it's a step-change in how efficiently and safely our markets operate.