THETRADETECHFX DAILY
viable, they may need to rely on prefunding trades or other liquidity mitigants.
“ It’ s very important that market participants are aware of what’ s in the Code and how its principles can help manage and reduce settlement risk,” Harvey said.
Embedding the code into daily workflows and aligning it with custodian counterparty standards will help firms mitigate risk while optimising liquidity under compressed timelines.
Looking ahead Europe’ s transition to T + 1 is not just a technical change – it’ s part of a broader global shift toward shorter settlement cycles. Other jurisdictions are expected to follow in the coming years. Firms that invest now in automation, strengthen coordination with custodians and embed settlement risk best practices will be better placed to manage risks and adapt quickly. Preparation is about more than meeting the October 2027 deadline; it’ s about building resilience so firms can effectively manage changes and seize opportunities in the evolving FX landscape.
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