On 20 November 2025, HM Treasury (HMT) published a draft of the The Central Securities Depositories (Amendment) (Intended Settlement Date) Regulations 2026 (the draft SI) alongside an updated policy note, Mandating T+1 settlement in the UK. HMT has also updated its webpage on accelerated settlement.

T+1 settlement

The draft SI amends the intended settlement date in the UK Central Securities Depository Regulation (UK CSDR) Article 5(2) so that it should occur ‘no later than the first business day after the day on which trading takes place’. This means that market participants must settle transactions in transferable securities which are executed on a UK trading venue by T+1 at the latest.

Further proposed changes

Among other things the draft SI also:

  • Provides additional clarity on what is meant by T+1 which means the business day after the day on which trading takes place.
  • Maintains current exceptions under the UK CSDR to this requirement for transactions which are negotiated privately and executed on a UK trading venue and transactions which are executed bilaterally and reported to a UK trading venue. It also maintains the exception for the first transaction where the transferable securities concerned are subject to initial recording in book-entry form.
  • Introduces an exemption for securities financing transactions (SFTs). The draft SI specifies that the following types of SFTs are exempt: securities or commodities lending, securities or commodities borrowing, buy-sell back transactions, sell-buy back transactions, and repurchase transactions. However, the exemption applies to these types of SFTs to the extent that they are transactions in transferable securities – meaning that other types of transactions included within the definitions under the UK Securities Financing Transactions Regulation, such as trades in commodities or guaranteed rights, are not relevant for the purposes of the exemption and these types of transactions remain out of scope.

Next steps

The government will consider any technical feedback provided on the draft SI by 27 February 2026. The draft SI is also subject to the affirmative procedure, meaning it needs to be debated and approved by both House of Parliament before it can be made.

The draft SI is scheduled to come into force on 11 October 2027 where the T+1 requirement will become law under UK CSDR.