NEWS UPDATE
POST-TRADE
UK taskforce publishes blueprint for T + 1 transition
The Code of Conduct includes critical and recommended actions, along with suggested timelines and behavioural commitments surrounding compliance and automation.
The UK T + 1 Accelerated Settlement Task Force( AST) has published its implementation plan for the UK’ s transition from T + 2 to T + 1 securities settlement.
The plan includes a Code of Conduct for market participants, which confirms 11 October 2027 will be the first trading date in UK cash equities for settlement on a T + 1 cycle – in line with the European Union and Switzerland.
Within the blueprint is a clearly defined scope, 12 critical operational actions and 26 highly recommended actions.
In addition, there are five behavioural commitments including a push for automation in SSIs, corporate actions, stock lending recalls, and a focus on‘ action this day’ urging firms to begin planning and where practicable, immediate implementation.
The implementation plan has the support of the public authorities including government( HMT), Financial Conduct Authority( FCA), and the Bank of England.
Primary regulation, UK CSDR, will be amended to reflect that T + 1 will be mandatory from 11 October 2027. Andrew Douglas, chair of the UK T + 1 AST, said:“ This is a milestone in the UK’ s journey to T + 1 settlement and reflects a substantial amount of work and co-operation across the industry. We have a date and a detailed plan for the way ahead. Market participants should start planning now ahead of the 2025 budget process for project funding in 2026. Automation will be a key component of a successful implementation.”
DATA
Trading Technologies launches new equities broker ranking system
The new scorecard system will provide monthly rankings of equity brokers for institutional investors.
Capital markets technology provider Trading Technologies( TT) has moved to enhance its institutional clients’ visibility and agility in the equities markets with the launch of a new broker ranking system.
Named TT Broker Scorecard, the new offering will publish a monthly report ranking global and regional equity brokers by their liquidity and execution quality.
The system is based on trade data compiled by Abel Noser Solutions which TT acquired in 2023.
It will be available via the Abel Noser transaction cost analysis( TCA) solution, Trade Zoom.
TT said the solution will allow buy-side participants to“ identify and vet” brokerage firms that trade in specific market segments. Sell-side clients can analyse their own competitive strengths and areas for improvement.
8 // TheTRADE // Q1 2025