With the EU now joining the UK in confirming an October 2027 transition to T+1 settlement, the message to financial firms is clear: the countdown has begun. But while timelines are fixed and technical work is underway, something fundamental is missing.
According to Broadridge’s Danny Green, Head of International Post-Trade, many firms still aren’t bringing business leaders and operations teams together, and some of the most important risks, like cyber threats and resilience, are barely on the radar.
“I’ve walked into firms where the tech team says, ‘We’re not doing anything on T+1—it’s a business issue.’ Meanwhile, the business is waiting for tech to lead. That disconnect is a concern. But just as worrying is what’s not being talked about at all, like how cyber threats or technology outages will play out when you’ve only got a single day to respond. It has to be part of the operating model conversation.”
The global state of play: timelines are set, urgency is rising
The UK and Europe have committed to a T+1 transition by October 2027. In the U.S., the transition to T+1 took effect in May 2024, making it the largest market to have shifted. In Asia, markets like Hong Kong, Australia, and Japan are in exploration and planning phases, while China and India have already moved to T+1.
“We’re moving from discussion to execution. The next three months are about defining what readiness looks like. And 2026 will be the year to build and test,” says Green. “This is not a drill. There is now a clear line of sight to the deadline.”
Firms that wait too long to act risk facing a time crunch they cannot overcome. The implementation window may appear generous, but as Green points out, “The clock is ticking, and the runway will feel much shorter than it looks—especially for firms that haven’t even started mapping their future-state model.”
Most firms will need to move fast to stay on track. A typical roadmap could look like:
- Now - end 2025: Conduct a gap analysis, mobilize cross-functional teams, and define the future-state operating model
- Late 2025 - end 2026: Build, integrate, and test systems and processes, including confirmation, settlement, and resiliency workflows
- 2027: Comprehensive end-to-end testing, contingency planning, and final readiness checks
Why operating models—not just systems—must evolve
T+1 is not simply a systems upgrade. It demands end-to-end process redesign, including faster confirmation cycles, real-time settlement preparation, and stronger collaboration across business partners.
The cultural shift required to move from next-day to same-day action is significant. It will require a change in client behavior and internal discipline—and how technology teams support both. This is not just a tech problem or a human problem. It’s a coordination problem, and the firms that solve it will be the ones that invest early in building cross-functional consensus.
“You can’t just plug in new tech and expect everything to work. You need to change how your people behave, your teams interact, and clients' expectations around timing and execution,” says Green. “It’s about rethinking your target operating model to fit a world where same-day responsiveness is the norm.”
This change must be driven from both the top and bottom. Business leads need to articulate where they want to go, and operations teams must provide the practical view of what’s manual today, what can be automated, and where existing bottlenecks lie. Without this alignment, progress stalls.
The overlooked risks: cyber and resiliency under pressure
While most conversations are focused on readiness and automation, there is far less attention paid to how T+1 impacts resiliency. In a world where you only have one day to detect and resolve issues, response time becomes everything.
“The industry standard for failover is still two to four hours. In a T+1 world, that’s a lifetime,” warns Green. “If you lose a system or suffer a breach, you simply don’t have the luxury of time anymore.”
Cybersecurity is particularly concerning. As firms begin exchanging more real-time data across systems and borders, the attack surface increases. Smaller firms, in particular, may lack the cyber maturity to protect sensitive trade data under compressed timeframes.
“Cyber risks and technology resilience can no longer sit in the background. They need to be modelled and tested in the same way you’re testing your settlement workflows,” Green says. “Tabletop exercises, resilience planning, and vendor audits all need to be part of your playbook.”
Firms in the U.S. that transitioned successfully emphasized early cross-industry coordination, real-time exception monitoring, and clearly defined ownership across the trade lifecycle. One key takeaway: operational resilience planning must extend beyond internal systems to include third-party vendors and counterparties, especially under compressed timelines.
From compliance to competitiveness: thriving under T+1
Beyond compliance, T+1 is an opportunity to create real competitive differentiation. Firms that modernize their post-trade environments will be better positioned to deliver faster service, reduce costs, and offer new capabilities to clients.
Green believes those who act early will reap the rewards. “This isn’t just a regulatory burden. It’s a chance to future-proof your operations,” he says. “Firms that take this seriously can improve client experience, reduce fails, and enhance risk controls. It’s an opportunity to drive meaningful change and lasting transformation.”