Investors adapt to US T+1 settlement shift; Europe eyes late 2027 change

Investors are adjusting their strategies in response to the US shift to one-day securities settlement in May, with increased funding for stock trades and a greater reliance on automation. European financial markets are considering adopting a similar T+1 settlement model by late 2027 to align with US practices. A coordinated effort by stock markets in the European Union and Britain could lead to halving the settlement time for transactions by late 2027, aiming to catch up with Wall Street. However, a comprehensive solution may not be achieved until the late 2030s.