Euroclear and HSBC to Launch AutoFX Automated FX Service Ahead of T+1 Settlement Shift
Key Takeaways
- •Euroclear and HSBC unveiled AutoFX on September 1, 2026, an automated FX service that integrates currency execution into the settlement workflow.
- •The service is intended to help market participants prepare for the T+1 settlement transition expected in October 2027 across European and UK securities markets.
- •AutoFX will initially cover more than 30 currencies and provide an execution dashboard, intraday FX fixing points, and transparent pricing.
- •The service is expected to launch in early 2027, before the scheduled T+1 transition.
- •The United States, Canada and Mexico moved to T+1 settlement in May 2024, prompting widespread operational adjustments among global market participants.
Euroclear and HSBC have announced a strategic collaboration to launch AutoFX, a new automated foreign exchange service designed to help Euroclear’s clients prepare for the move to T+1 settlement across European and UK securities markets.
Unveiled on September 1, 2026, from Brussels and London, AutoFX embeds clients’ FX execution directly into the settlement process. The service automatically sources the required currencies, helping firms reduce operational risk while supporting settlement certainty and streamlining cross-border activity.
The shift to T+1 settlement, anticipated for October 2027 in Europe and the UK, will shorten the window between trade execution and settlement. The change follows the United States, Canada and Mexico, which moved to T+1 settlement in May 2024, a transition that prompted widespread operational adjustments among global market participants. While shortening the cycle is expected to improve market efficiency and reduce counterparty risk, it will also demand faster funding, liquidity and FX processes, increasing the need for automation. Cross-border trades, which often require currency conversion between execution and settlement, are particularly exposed to the compressed timeline because FX processes have traditionally operated on cycles that assumed a longer settlement window.
AutoFX will initially cover more than 30 currencies, integrating FX conversion and execution into the settlement workflow. Clients are expected to gain real-time visibility through an execution dashboard, access to intraday FX fixing points aligned with global settlement schedules, transparent pricing, and tools intended to optimize liquidity and reduce excess funding needs. The service is expected to launch in early 2027, ahead of the scheduled October 2027 T+1 transition.
The partnership combines Euroclear’s settlement infrastructure with HSBC’s global FX pricing and liquidity capabilities. Euroclear is one of the world’s largest international central securities depositories, providing settlement and custody services across European markets, while HSBC operates a major global FX business.
Sebastien Danloy, Euroclear’s Chief Business Officer, described the T+1 transition as one of the most significant post-trade changes in decades. Vincent Bonamy, HSBC’s Head of Global FX Services, called AutoFX a first-of-its-kind offering that could shape future FX solutions industry-wide.
