UK government lays draft SI on T+1 settlement

The draft Central Securities Depositories (Amendment) (Intended Settlement Date) Regulations 2026 has been laid before the UK Parliament, accompanied by a policy note . The draft statutory instrument (SI) amends the UK Central Securities Depositories Regulation to mandate settlement "no later than the first business day after trading," making T+1 the standard settlement period in the UK from 11 October 2027. The SI introduces exemptions for certain securities financing transactions, specifically: securities or commodities lending; securities or commodities borrowing; buy-sell back transactions; sell-buy back transactions and repurchase transactions (to the extent they involve transferable securities). The policy note explains the approach taken and clarifies issues not addressed in the legislation. The deadline for technical comments on the draft SI is 27 February 2026. Subject to feedback, the government intends to lay the final SI well before the implementation date, to allow for Parliamentary scrutiny and provide early certainty for the sector.

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