Stephen Isgar, Director, Custody Product Management, outlines in the ACPM Observer why a significant operational shift is approaching for Canadian pension plans with European exposure. On October 11, 2027, the UK, EU and Switzerland will move from T+2 to T+1 settlement cycles—compressing post-trade processing time by roughly 80%.
While North America successfully navigated its own T+1 transition in 2024, Europe’s shift presents a different challenge. The continent’s fragmented market infrastructure, diverse regulatory frameworks and complex foreign exchange dynamics create operational hurdles that extend far beyond simple timeline compression.
For Canadian pension plans—whether managing assets internally or through external investment managers—understanding these challenges is essential for maintaining portfolio efficiency and mitigating settlement risks.
Contact your RBCIS relationship manager or reach out to t1askmeanything@rbc.com to discuss your T+1 readiness strategy.
