Euroclear and HSBC are teaming up on a new automated FX service to help clients get ready for T+1, the shortened settlement cycle coming to Europe and the UK in October 2027.
Once that shift happens, the gap between trade execution and settlement will shrink, and firms will need to handle funding, liquidity, and FX conversion much faster than they do now. That’s driving the push for more automation across the settlement process.
The new offering, called AutoFX, folds FX conversion and execution straight into securities settlement, covering more than 30 currencies from launch. It’s due to go live in early 2027, connecting Euroclear’s settlement infrastructure with HSBC’s FX pricing, conversion, and liquidity services.
Clients will be able to track their FX activity in real time through a dashboard, tap into intraday fixing points timed to match settlement schedules across different time zones, and get clearer pricing along with tools to cut down on excess funding needs.
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 confidently adapt to a faster settlement environment.”
Digital Trade View: This partnership signals that T+1 readiness is becoming a competitive necessity, not just compliance. By embedding FX directly into settlement, Euroclear and HSBC are setting a template other custodians and banks will likely need to match. Expect more automated FX tie ups as October 2027 approaches.