CTS TRADE IT supports clients in preparing for T+1 settlement

The transition of European capital markets to a shorter settlement cycle in October 2027 will place new demands on financial institutions’ processes and technology. CTS TRADE IT is working with clients to assess the impact and identify solutions that support readiness and cost-effective investment.

Shortening the settlement cycle to one business day after trade execution will increase the emphasis on speed, accuracy and automation. Banks, brokers and other market participants will also have less time for manual intervention and resolving discrepancies. Preparation therefore requires a review of interdependencies across the entire process, from trade execution through to settlement.

CTS TRADE IT’s experts are actively supporting these preparations alongside clients, including major banking institutions. They help clients understand the implications of T+1, assess the changes required and design appropriate process and system enhancements.

Turning expertise into practical improvements

The impacted areas include earlier submission of settlement instructions on trade date, greater automation of trade confirmations with counterparties, and timely identification of discrepancies that could delay settlement.

CTS TRADE IT combines investment banking expertise with experience in financial software development. This enables the team to assess technology requirements in the context of financial institutions’ day-to-day operations and work with clients to translate analytical findings into practical solution proposals.

Shared requirements and cost-effective investment

Client working groups are an important part of these preparations. They provide a forum for discussing the implications of changes, sharing experience and identifying requirements common to multiple institutions. These requirements then inform the development of CTS products.

Alongside addressing individual clients’ needs, this approach creates opportunities for shared solutions and for clients to share the development costs of functionality that can serve multiple institutions. It helps direct investment towards changes that support T+1 readiness while continuing to deliver value in daily operations.