ISITC TALKTIME: T+1 Implementation – Budget Considerations

ISITC TALKTIME: T+1 Implementation – Budget Considerations

Posted on March 18, 2025 by Cathy Wright

TalkTime Podcast: T+1 Implementation – Budget Considerations

ISITC Europe in conjunction with the CISI, PIMFA, IA, SIO and ISLA, is creating a series of Podcasts to examine the  Task Force recommendations for T+1 implementation in the UK. The Podcasts focus on T+1 and the related impacts on Financial Services firms both domestically and internationally.

In the UK, the T+1 project is being coordinated via the Accelerated Settlement Taskforce (AST), which was initiated originally by the Treasury, but which is now being sponsored by Euroclear. There are plans for the UK AST to continue up to assist with implementation up until the live date of 11^th of October 2027. However, the AST is likely to continue beyond this date.

The changes required to achieve successful implementation to ensure efficient T+1 settlement will vary from firm to firm and will be dependent on the capability of existing systems to be adapted or there may be a requirement to invest in new systems.

The need for automation has clearly been brought to the fore. As has been clearly demonstrated since the USA moved to T+1, which has resulted in an 18% increase in operational overheads. Mainly due to the increased number of employees needed to bridge gaps in non-automated processes.

Continuing from the previous podcast entitled ‘T+1 Implementation – Things to Consider’ Ben Johnson, Director at Forvis Mazars Consulting and Chairman of the UK T+1 Operations Working Group discusses with Gary Wright, Director of Industry Affairs at ISITC Europe, the imperative for firms to mobilise their T+1 project team as early as possible in 2025.

Ben talks about the need to create good communications internally and externally with counterparties, settlement agents and clients. He discusses the benefits to firms of collaboration and notes the close relationship between the UK T+1 Accelerated Settlement Taskforce (AST) and the EU T+1 taskforce, as an example of an international alliance.

Ben calls for all firms to immediately begin detailed assessments, not only on the impact on their systems, but also to assess any internal behaviour changes, as well as those within their settlement supply chain.

The focus according to Ben right now is to concentrate on issues related to implementation. He notes the need for firms to set budgets as soon as possible, for incremental T+1 projects beginning in 2025. However, this should only be done after they have analysed their own, requirements, so as not to waste money in non-key areas and to hopefully prevent the increase in overheads as seen in USA.

Viewing time: 24 mins

Ben Johnson is a Director at Forvis Mazars Consulting where he assists Financial Services companies with their strategic change portfolios. Ben is a member of numerous industry working groups and is co-lead of the Operational workstreams of the UK’s Accelerated Settlement Taskforce (T+1).