With the move to T+1 settlement about a year away, nearly a quarter of financial institutions still have no plan in place to meet the deadline, according to research from Aqua Global Solutions.
Aqua Global’s research found that 23 per cent of financial institutions have yet to put plans in place for the shorter settlement cycle, which takes effect on 11 October 2027. The transition cuts the time between a trade and its settlement to one business day, leaving far less room for manual processing and exception handling.
Cian Fernando, CEO of Aqua Global, warned that the remaining time is barely enough for banks still dependent on legacy systems, and that those who leave it late face costly overhauls.
“Readiness across the industry remains patchy. Many banks still run on legacy infrastructure that simply can’t settle trades fast enough. If they don’t modernise soon, they’ll face failed settlements, cash penalties, funding pressure and operational strain,” he said.
Late movers pay more
For Fernando, the risk lies less in the date itself than in delay. Banks that are slow to move from manual intervention to automated handling, he argued, will end up in rushed transformation programmes, reworking core processes under time pressure and regulatory scrutiny as costs and risk build.
“A year can feel like a long time. But the real pressure isn’t the deadline, it’s leaving preparations too late,” he said.
He also framed the change as an opportunity rather than only a compliance exercise. Faster settlement reduces counterparty exposure and market risk, and the automation needed to achieve it allows firms to handle higher volumes without adding headcount.
“Banks that move now will gain an edge. T+1 isn’t just a regulatory requirement, but a genuine opportunity to innovate,” Fernando said. “Early movers will be operating with confidence while their competitors are still firefighting.”
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