Britain is targeting a transition to a T+1 trading regime by the fourth quarter of 2027, with plans to either synchronize this change with the European Union or proceed independently if necessary [2c054f98]. Andrew Douglas has been appointed to lead the transition team, which is tasked with navigating this significant shift in the financial markets [2c054f98].
The proposed transition presents two scenarios: a coordinated switch where both the UK and EU implement T+1 together, or a unilateral move by the UK if the EU faces delays [2c054f98]. Concerns have been raised regarding potential funding mismatches and operational challenges if the transition is not harmonized across borders [2c054f98]. Jim Goldie, a key figure in the discussions, has emphasized the importance of aligning the UK’s plans with those of the EU to mitigate these risks [2c054f98].
A consultation on the proposals has been launched, with final recommendations expected by January 2025 [2c054f98]. Industry stakeholders are urged to prepare for the changes by the end of 2025 to ensure a smooth transition to the new trading regime [2c054f98]. This move is part of a broader effort to enhance the efficiency of the UK’s financial markets and maintain competitiveness in the global arena, especially as the EU may not be ready to implement T+1 until 2028 due to market complexities [2c054f98].