Euroclear and HSBC have partnered to launch AutoFX, an automated FX service for Euroclear’s clients ahead of Europe and the UK’s upcoming transition to T+1 settlement.
Specifically, the partnership is designed to reduce operational risk and support settlement certainty as the region moves to a shorter settlement cycle.
Sebastien Danloy, chief business officer at Euroclear, said: “The move to T+1 is one of the most significant changes to Europe’s post-trade landscape in decades. While it will deliver important efficiency gains for the market, it also requires firms to modernise and automate their processes.
“By partnering with HSBC, we are extending our settlement offering with integrated FX services that help clients improve settlement certainty and adapt to a faster settlement environment.”
The service combines Euroclear’s settlement infrastructure with HSBC’s FX pricing, conversion and liquidity capabilities and is due to go live in early 2027, ahead of the T+1 deadline.
Europe and the UK are expected to transition to T+1 on 11 October 2027.
Read more – Euroclear extends instruction deadline ahead of UK’s T+1 shift
Vincent Bonamy, head of global FX services, HSBC, said: “This first-of-its-kind FX service for Euroclear will help pave the way for enhanced FX solutions across our industry on a global scale.”
The compressed window between trade execution and settlement is expected to improve market efficiency, reduce counterparty risk and strengthen resilience – but it will also force firms to complete funding, liquidity and FX activity faster, adding pressure for greater automation across the settlement process.
