While major markets in Asia-Pacific ( APAC ), such as Hong Kong, Singapore, Japan, and Australia, have yet to announce specific plans to move to the T+1 trade settlement regime, regulators, asset owners, and asset managers have been busy preparing for its implementation since the first half of 2025.

APAC regulators are fostering supportive environments through broader regulatory frameworks that will indirectly help readiness to a T+1 shift, while asset owners are focusing on compliance and risk mitigation to adapt to faster settlement cycles, and asset managers are investing heavily in automation, data analytics, and operational resilience to manage related challenges, particularly for US-exposed portfolios.

In an interview with The Asset, Gerard Walsh, global head of client solutions at Northern Trust, explains that APAC regulators, asset owners, and asset managers are benefiting from the “second mover advantage”, where lessons that are being learned from T+1 adoption in the United States, Europe and the United Kingdom are enabling more efficient and informed implementation.

The US, Canada, Mexico, and Argentina moved to the T+1 regime on May 28, 2024, which means that the settlement of trades now occurs one business day after the trade date, rather than the previous two business days ( T+2 ), while Europe and the UK are scheduled to move to T+1 on October 11, 2027.

Collaborative approach

“One of the most significant trends is the collaborative approach adopted by the UK and EU, who plan to move to T+1 together by 2027. This extended timeline reflects the complexity of their market structures, especially in Europe, which consists of multiple exchanges, currencies, and time zones. In contrast to the relatively centralized structure of US and Canadian markets, Europe’s fragmented landscape presents significant operational challenges that require early and detailed planning,” Walsh says, noting a similar situation can be found in the APAC market.

Ongoing challenges to T+1 adoption in APAC are in areas such as ETF trading, FX operations, and fund subscription/redemption timings, Walsh says. These tensions are particularly pronounced given the limited overlap with North American market hours.

“Despite this, APAC remains a vital hub ( in global T+1 adoption ). Hong Kong is the third-largest financial centre globally, and its integration with T+1 timelines is essential for global harmonization. In the next few years, APAC will likely focus on enhancing readiness, strengthening FX and operations processes, and learning from the experiences of the US and Europe,” Walsh says.

“Currently, major APAC markets such as Hong Kong, Australia, Singapore, and Japan have not signalled specific plans to move to T+1. This means there is no immediate shift on the horizon, and the region is likely to maintain a wait-and-see approach while monitoring developments in the US, UK, and EU.”

Operational activities

A review of trends in the first half of 2025 by The Asset suggests that regulators, asset owners, and asset managers have been pursuing policies and operational activities that can be viewed as preparations for the implementation of T+1.

In Hong Kong, for example, the Capital Markets Authority ( CMA ) has introduced new rules allowing caps on service fees and commissions, indicating a proactive regulatory environment. While not explicitly tied to T+1, such regulatory agility suggests that Hong Kong authorities are fostering an environment conducive to adapting to global trade settlement changes.

In Taiwan, regulators are also creating a supportive environment for asset management growth, with a relatively open regulatory framework that facilitates operational upgrades, including collaboration with exchanges like the Taipei Exchange to launch innovative financial products, which could support the infrastructure needed for T+1 compliance.

Asset managers in the region, supported by their asset service providers such as Northern Trust and Brown Brothers Harriman ( BBH ), are also actively automating FX calculations and trade workflows, especially for block or batch events such as portfolio rebalancing, to meet the demands of T+1 settlement in 2025. While Northern Trust has not disclosed the asset managers it is servicing, BBH has announced a collaboration with Japan-based Resona Asset Management Co. Ltd to enable the Japanese asset manager to achieve greater operational efficiencies through trade data transmission and FX netting, thus enhancing their securities-based FX workflow for T+1 compliance. 

“APAC managers often have lean operational teams, and as such, asset service providers play a crucial role in helping managers navigate the T+1 environment, by handling trade execution, FX, safekeeping, and reporting. The role of asset service providers in providing continued support will be essential as APAC transitions to T+1,” Walsh says.

The region’s response is shaped by the need to address time zone issues, geopolitical uncertainties, and regulatory complexities, with a strong emphasis on technological upgrades to ensure compliance and efficiency, he adds.