Euroclear and HSBC Partner to Launch AutoFX for T+1 Settlement

Quick Summary

Euroclear and HSBC have partnered to launch AutoFX, an automated foreign exchange service designed to streamline cross-border transactions as European and UK markets shift to T+1 settlement by October 2027. The service embeds FX conversion directly into the securities post-trade workflow to reduce operational risk.

How Does AutoFX Support the Move to T+1 Settlement?

The impending transition to T+1 settlement across European and UK capital markets significantly shortens the post-trade window. Market participants must manage liquidity, funding, and currency conversion much faster. By embedding currency execution directly into Euroclear’s post-trade infrastructure, AutoFX automates cross-border processing to eliminate manual delays and mitigate heightened counterparty risk.

• Automated currency sourcing integrated directly into securities processing.
• Coverage for over 30 currencies at launch.
• Compressed post-trade timelines handled seamlessly without excess operational friction.

What Capabilities Does HSBC and Euroclear's AutoFX Offer?

AutoFX combines Euroclear’s robust settlement architecture with HSBC’s global pricing and liquidity footprint across more than 20 local markets. Designed to provide institutional participants with complete control over cross-currency activity, the platform simplifies liquidity management ahead of compressed T+1 settlement cycles.

• Real-time operational visibility provided via an interactive execution dashboard.
• Intraday FX fixing points aligned with varied international settlement schedules.
• Optimized funding requirements through transparent pricing and liquidity management.
• Launch targeted for early 2027 ahead of mandatory market deadlines.

"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. Our role is to support clients through this transition by achieving the right balance between simplicity and resilience. By partnering with HSBC, we are extending our settlement offering with integrated FX services that help clients improve settlement certainty and confidently adapt to a faster settlement environment. Solutions such as AutoFX will help the industry realise the full benefits of T+1 while supporting a more harmonised settlement landscape." said Sebastien Danloy, Chief Business Officer, Euroclear

"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. As part of our Global FX Services offering, which has on-the-ground presence in more than 20 markets, we have developed a broad range of FX solutions across the full FX value chain, from front to back." said Vincent Bonamy, Head of Global FX Services, HSBC

FF NEWS TAKE:

The shift to T+1 settlement represents a major operational hurdle for cross-border transactions, where FX execution has historically been a significant bottleneck. This collaboration between market infrastructure giants demonstrates that embedded automation is mandatory for industry compliance. Institutions that fail to automate cross-currency liquidity before 2027 risk severe operational friction and settlement failures across global markets.