DTCC Consulting worked with a global broker-dealer to assess its readiness for the transition to T+1 settlement in the UK and EU. We identified operational and technology gaps and developed a roadmap to support its preparations for accelerated settlement.

Background

The transition to T+1 settlement in the UK and EU requires firms to consider and mitigate the impact of compressed settlement timelines across their operations, technology, controls and governance. 
 
The client engaged DTCC Consulting to assess its current post-trade processes and provide guidance on the changes required across its business to prepare for the transition to T+1. The engagement also included support for the development of a new governance framework for the client's UK and EU T+1 programme. 
 
As part of the assessment, the firm’s controls were benchmarked against industry guidance and implementation frameworks, including the UK Accelerated Settlement Taskforce Technical Group’s Implementation Plan and the EU T+1 Industry Committee’s High-Level Roadmap to T+1 Securities Settlement in the EU.  
 
Drawing on our industry expertise, we also shared insights on leading operational practices and peer comparisons, helping to identify key dependencies and recommendations to improve the firm’s T+1 readiness. 

“Preparing for T+1 isn’t just about working to a shorter settlement cycle. It requires firms to understand where existing processes, technology and dependencies could create challenges when timelines compress.”

DTCC Consulting

Our Approach

DTCC Consulting began by conducting a current-state assessment of the client's securities processes, including a front-to-back view of its clearing and settlement flows. This was followed by a gap analysis across processes, controls and vendor technology to identify areas requiring enhancement or remediation. 
 
The assessment identified a number of time-consuming, manual processes that could impede the client's ability to meet compressed market deadlines. 
 
To complement the qualitative assessment, we analyzed the client's securities transaction data to understand current performance against the T+1 operational timetable, including allocation and confirmation processing completion times and settlement instruction submission times.  
 
Additional matching analysis was used to identify root causes where performance was below target and to support the development of a framework for targeted outreach to counterparties and technology vendors. 
 
These findings were validated through workshops and quantitative analysis and used to develop a prioritized set of recommendations.

"By combining operational expertise with quantitative analysis, we helped our client move from identifying challenges to prioritizing action and building a clear roadmap for T+1 readiness."

DTCC Consulting

Impact

DTCC Consulting helped the client translate its assessment findings into a defined T+1 book of work and detailed roadmap, connecting identified readiness gaps with prioritized actions, milestones and dependencies. 
 
The roadmap provided a structured path forward, including actions to improve straight-through processing and implementation considerations for vendor and counterparty outreach. 
 
This gave the client greater clarity around the operational and technology changes requiring attention, as well as greater confidence in its ability to meet compressed T+1 deadlines as it progresses its UK and EU preparations.