DTCC has partnered with independent research consultancies to assess the readiness of the global finance community for Europe’s move to T+1 settlement in October 2027. The ValueExchange and Firebrand Research each looked at T+1 in Europe through a different lens and we’re delighted to share some key findings from their research studies.

While the U.S.’s successful transition to T+1 in 2024 provides valuable insight and best practices, such as the importance of industry collaboration and regulatory mandates, Europe’s post-trade landscape presents unique challenges. The number of CSDs and clearing houses operating on different processing schedules, operational frameworks, currencies, and tax and legal systems add significant complexity.

Our market-leading trade processing solutions can help you achieve seamless straight-through processing and our team of expert consultants can guide you along your journey to T+1 in Europe. DTCC has been operating in Europe for over two decades and has clients across 30+ European markets.

The countdown to T+1 has started. From assessment and planning, to implementation, testing and transition, we’re here to ensure you are T+1 ready.

The UK Accelerated Settlement Taskforce implementation plan outlined that to meet UK T+1 market practice guidelines:

• Allocation and confirmation processing will need to be completed no later than 23:59 UK time on T+0
• Settlement instructions will need to be sent no later than 05:59 UK time on T+1

The target date set by the UK Accelerated Settlement Taskforce is 31st December 2026. However, The ValueExchange surveys showed that a significant proportion of allocations and confirmations are anticipated to miss these market practice deadlines. With trade date processing being an important enabler to the long-term success of the UK’s transition to T+1, it is crucial that firms start to prepare for the 2026 deadline now.

The ValueExchange Q1 2026 Pulse Survey found that Europe T+1 preparations are firmly underway across the industry, with 76% of firms engaged in T+1 work, and over a third expecting to complete their core projects by the end of 2026. This reflects a market that is moving beyond initial planning into execution at scale.

Looking ahead, 2027 is emerging as the pivotal year for consolidation, when more than 98% of firms expect to focus on embedding automation, strengthening governance, and operationalizing new processes. Encouragingly, almost no firms anticipate their T+1 programmes extending beyond this point, signalling clear progress towards the implementation of T+1 in Europe in October 2027.

As firms accelerate their T+1 programmes, counterparty risk and ecosystem dependencies are emerging as critical challenges that cannot be addressed in isolation. The ValueExchange Q1 2026 Pulse Survey findings highlight that clients, counterparties and custodians are now a growing concern for up to 37% of firms, with readiness dependent on external partners.

This reinforces a central reality of the transition to T+1: success depends on the whole trade lifecycle moving in step, from clients and brokers through to custodians, FMIs and service providers. Industry discussions continue to show that these interconnected dependencies represent one of the most significant risk drivers, requiring firms to increase transparency, strengthen communication and actively engage their counterparties earlier in the process.

To hear how firms are approaching these challenges and the practical steps needed to reduce exposure, explore our “De-risking the transition to Europe T+1” insights.

"When it comes to T+1, the cost of doing nothing—or doing it poorly—can far outweigh the investment in getting it right. Preparing early and thoroughly isn’t just best practice, it’s essential. At DTCC Consulting, we help firms navigate the complexity with confidence, from understanding counterparty performance to identifying operational gaps. The firms that act now, with the right support, will be the ones best positioned to mitigate risk and avoid costly missteps."

Rebecca Ashton, DTCC Consulting

Europe’s transition will not only be more complex than the U.S. move to T+1, but also more costly. Firebrand Research estimates the total cost of EU T+1 projects at a global custodian with a large client base and multiple post-trade systems could reach $36m.

In its Q1 2026 Pulse Survey, The ValueExchange asked firms where they are focusing their investment for T+1 in the UK, the top areas of investment included populating PSET at the point of allocation / confirmation and the automation of SSIs.

Allocation & Confirmation

Comparing The ValueExchange and DTCC data, the case for automation is clear. 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. You can see a breakdown of DTCC’s same-day match agreed rates by region here.

"By completing trade matching activities on trade date, matched and agreed transactions can seamlessly and efficiently enter the settlement process. For markets with higher volumes of securities transactions like the UK, Germany or France, same-day match agreed rates are around 98% which suggests a high rate of post-trade automation. However, some European markets with smaller trade volumes and smaller firms still rely on manual post-trade processes, making it much more difficult to achieve T+1 timelines."

Sean McEntee, DTCC

Standing Settlement Instructions (SSIs)

As noted in the Firebrand Research whitepaper, the Bank of England has directly endorsed the adoption of the Financial Markets Standards Board’s (FMSB) Standards for Standard Settlement Instructions (SSIs). The FMSB Standards establish definitive market practices for the sharing of SSI data, promoting a standardized format and usage of electronic solutions to enhance transparency, improve accuracy and reduce trade failures.

"A significant number of trade failures are a direct result of inaccurate or missing settlement instructions. With shorter settlement cycles, it’s vital that market participants move away from the manual exchange of SSIs. ALERT enables a community of investment managers, brokers and custodians to securely manage and automatically share accurate SSI data globally. ALERT has over 17m SSIs, with 75% being non-U.S."

Jan Coughlan, DTCC

PSET

PSET (Place of Settlement) matching is a focus for market participants because of the number of data points, and the potential for discrepancies in settlement locations which must be resolved by brokers and custodians.

"It’s surprising that PSET matching is noted as such a concern for market participants but it’s good to see that it’s also an area where firms are looking to invest. Clients using ALERT are able to agree on PSET, and in March 2026, 97% of allocations submitted to CTM included a PSET. PSET will become a mandatory population field in CTM in October 2026."

Matt Johnson, DTCC