More than eight in 10 (83 per cent) UK post-trade professionals say their firms are fully prepared or on track to meet the UK’s October 2027 T+1 settlement deadline, but only 32 per cent describe their operations as fully prepared today, according to The Race to Atomic Settlement: Can the UK Lead?, a new whitepaper from UK post-trade technology firm Tokenovate.
The report, based on a survey of 250 senior post-trade professionals in the UK, reveals a market in which confidence is running ahead of operational readiness. Only 41 per cent say their combined T+1 readiness and broader post-trade transformation programme is fully funded, leaving 59 per cent without adequate budget in place.
The gap between market ambition and operational reality extends beyond T+1. Respondents expect widespread UK adoption of T+0 or atomic settlement within an average of 3.7 years, yet almost every firm still relies significantly on manual processing somewhere in the post-trade lifecycle.
Operational constraints extend across the market, with 80 per cent saying dependencies on external counterparties and market infrastructure providers significantly or severely limit modernisation. Despite 99 per cent reporting at least partial post-trade automation, nearly every firm still relies significantly on manual processing in at least one area, including allocation management, reconciliation and trade confirmation.
Data fragmentation remains another major constraint, with 88 per cent describing it as a critical or significant challenge to post-trade efficiency. While 93 per cent are aware of the FINOS Common Domain Model (CDM), only 38 per cent say they are actively implementing or using it.
Other key findings include:
Trapped liquidity creates a material burden: 98 per cent regard capital tied up as a result of slow or fragmented settlement as a material cost or risk to their organisation.
Real-time settlement moves into planning: 79 per cent have T+0 or real-time settlement on their agenda, including 46 per cent with a formal T+0 or real-time settlement roadmap with defined milestones.
Tokenised settlement is moving beyond discussion: 63 per cent are live with or piloting tokenised settlement, while a further 26 per cent have formal plans to explore it.
Interoperability ranks among leading benefits: 31 per cent cite improved interoperability across counterparties and platforms as one of the most important potential benefits of fully automated, real-time settlement.
UK leadership opportunity: 74 per cent believe the UK is well positioned to lead globally in digital market infrastructure and atomic settlement.
Richard Baker, Founder and Chief Executive Officer of Tokenovate, says: “Confidence around T+1 is encouraging, but being on track is not the same as being operationally ready. Many firms still depend on manual processes, fragmented data and infrastructure outside their direct control. With less time to resolve issues under T+1, those weaknesses will become harder to manage.
“The market believes widespread UK T+0 or atomic settlement could be less than four years away. Firms need to make sure the work they do for T+1 also prepares them for what follows. That starts with consistent, standardised data, so trades are represented in the same way across systems and counterparties. If we get that right, the UK has a real opportunity to lead.”
“Confidence around T+1 is encouraging, but being on track is not the same as being operationally ready. Many firms still depend on manual processes, fragmented data and infrastructure outside their direct control. With less time to resolve issues under T+1, those weaknesses will become harder to manage.
