Securities-financing transactions are often described as the market’s plumbing, providing liquidity, covering shorts and recycling collateral. While T+1 formally shortens settlement, regulators in the UK, EU and Switzerland have extended their recommendations to SFTs to avoid bottlenecks. Momentum is clear, firms are embedding automation, interoperability and real-time telemetry to keep cross-border flows synchronised and reduce the risk of failures.
Industry Actions
Broker dealers should prioritise same-day recalls, trade-date allocations/confirmations and overnight settlement readiness. Allocations and confirmations must be completed by 23:00 EU or 23:59 UK on T, with settlement instructions ready for the first overnight windows (05:59 UK time on T+1). They should also enable partial settlement, publish clear cut-offs across time zones, and automate repo confirmations with open-repo terminations aligned to ERCC standards.
Buyside firms need to signal sales immediately and adopt automated, standards-based recall/return processes. Allocations must be pre-matched on T with clean SSI/PSET, while inventory and FX/funding should be aligned to compressed cross-border windows.
Agency lenders are required to automate recall and return flows end-to-end and operate to clear recall/return cut-offs. Recalls raised on T should capture seller activity (EU recall guidance 17:00), while return notifications and settlement deadlines must be observed. Same-day returns (T+0), pro-rata loan release and triparty RQV models can help minimise chain breaks.
Custodians will need to offer partial settlement, hold/release, allegements (EU) and auto-borrowing/collateralisation with real-time dashboards. They must enable near-real-time settlement instruction ingestion, publish cut-off matrices and deliver settlement forecasts to help clients meet compressed deadlines and reduce settlement fails.
Technology & Infrastructure Enablers
The transition to T+1 depends on the technology ecosystem that underpins securities financing. Established providers, including Pirum, EquiLend, Broadridge and FIS, are scaling solutions in line with industry recommendations and best practices. At the same time, fintech entrants such as Banqora and GLMX are introducing AI-driven tools and digital workflows targeting friction points in matching, inventory management and trade automation.
Key areas of focus:
- Automated, standards-based workflows: Recalls, returns and repo confirmations aligned with ERCC timing.
- Pre-matching and readiness: Validating allocations and instructions on T so settlement instructions are ready.
- Settlement tools: Partial settlement, hold/release and pro-rata loan release to prevent chain breaks.
- Cross-border transparency: Dashboards and APIs to monitor exceptions, liquidity and collateral.
- Operational resilience: Scalable infrastructure to support higher volumes and tighter deadlines.
The ecosystem is converging on the same goals: clean data on trade date, faster borrower responses, automated lifecycle processing and transparent intraday monitoring. These collective efforts are designed to minimise settlement fails and funding stress so that SFTs enable, rather than obstruct, the transition to T+1.
Where Delta Capita Can Help
Delta Capita supports clients through a structured T+1 impact and delivery framework that embeds the latest recommendations from the UK-TCC, EU and SwissSPTC. Our approach follows a clear sequence:
- Current state review: assess existing workflows, dependencies and controls.
- Impact analysis & gap identification: determine where firms fall short under compressed settlement timelines.
- Mapping to regulatory expectations: align gaps to UK, EU and Swiss taskforce recommendations and expected behaviours.
- Redesign operating models: re-engineer recalls, returns, repo confirmations and cross-border workflows; define target operating models that embed automation and best practice.
- Testing & validation: run scenarios, counterparty analysis and operational dry runs to evidence readiness.
- Compliance & reporting: document decision-making, provide readiness dashboards, and demonstrate regulatory alignment in a transparent and auditable way.
By combining consulting expertise, technology solutions and scalable delivery capacity, Delta Capita helps firms accelerate mobilisation, reduce settlement risk and achieve compliance with confidence.
Our Takeaways
The Securities Finance Symposium confirmed both the progress made and the work still ahead. Market participants are mobilising, providers are scaling automated solutions, and 2026 will be the critical implementation year ahead of the 11 October 2027 deadline.
For firms active in SFTs, the path forward is clear: automate recalls, returns and repo confirmations on trade date, match allocations and instructions before overnight cycles, and build resilience into cross-border workflows. Those who act early will cut settlement risk and be better positioned to serve clients in a compressed T+1 environment.
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