Location: Blackrock, Drapers Gardens, 12 Throgmorton Ave, London EC2N 2DL
Time: 2.30–4.30pm
Minutes
Item 1: Introductory remarks
The Chair opened the meeting and welcomed the members and observers. The Committee gave thanks to two long-standing members, Andy Dyson of ISLA and Andy Krangle of Citi, who will both step down from the Committee.
Item 2: Diversity, equity and inclusion
The Committee discussed hybrid working solutions and noted references to flexible working in UK Money Market Code best practice are for all roles regardless of location, and contribute to greater diversity of participation in financial markets. Members highlighted that as cultural shifts in managing work and home life have embedded, flexible working is seen as a key element in recruitment and retention of talent. In some cases, a reduction in flexible working patterns has led to a negative impact on career aspiration and ambition.
Item 3: T+1 update
The Committee discussed the upcoming draft legislation for Accelerated Settlement and moving to T+1 settlement regime and securities finance exemptions. HM Treasury will adjust Article 5 (2) in advance of publication at the end of 2025. The draft statutory instrument will replicate existing wording with minimal changes. Existing exemptions will remain for securities finance transactions. The FCA will publish a policy note with background explanation supporting legislation.
The Committee noted the importance of automation ahead of the 11 October 2027 deadline as the Accelerated Settlement Taskforce published the second version of its report. The FCA is engaging with firms as part of ongoing supervision, to confirm preparation and readiness for testing which commences in 2026. Engagement will be augmented with publication of the FCA blog due in October, which will set out key points and good practice for end-to-end settlement processes.
Members commented on the necessity to confirm solutions for cross-border collateral settlements and market sales executed at market close, ahead of the 2027 deadline which will require collaboration and enhanced resourcing. Compressed settlement may lead to an increased risk for participants and impact the type of business firms are able to conduct.
The Committee noted a reticence to invest in digitalisation, which requires a consolidated agreement across industry, to progress. Focus has been on T+1 implementation for legacy systems and processes and enhancing existing industry solutions rather than investment in the future look of securities finance.
Item 4: Market update – Committee
The Committee discussed the Bank of England discussion paper on measures to enhance gilt repo market resilience, covering gilt repo clearing and minimum haircuts. Members noted the difficulty of implementing haircuts with cross-product margining practices where banks apply haircuts across a managed client portfolio.
Members raised concerns around a deterioration in corporate action payment discipline noting focus may be redirected to implementing electronic solutions in other parts of the transaction chain. Drivers of the decline include mismatched instructions at important dates in the corporate action calendar. Vendor solutions are available and participants expect an improvement across the market as automated solutions are implemented and penalties take effect.
Item 5: Securities financing vendors
The Committee discussed the increased requirement for automation across the securities finance industry and vendor solutions. A diverse range of solutions is available, tailored to business requirements and budget with several new entrants into the market recently. Fragmentation of inventory and a reduction in liquidity remains a concern. It was noted that industry has a part to play in demanding best practice solutions and interoperability via purchasing power. This is seen as critical as firms increase use of automation and electronic solutions across products and jurisdictions. The Committee will consider the benefits of a digital sub-group to inform the Committee of change in this landscape.
Item 6: SLC Tax & Regs update
The SLC Tax & Regulations sub-committee provided an update to the group on regulatory changes for UCITs collateral arrangements, noting ESMA were in principle, content with collateral via pledge construct. Council approval is expected in the near term with further updates expected.
A new EU capital markets Savings & Investments Union is expected to replace the Capital Markets Union, providing clearer strategy and overcoming barriers to a unified market, including low issuance and higher capital charges to funds. The new Union aims to create a deeper, more liquid market but proposals are yet to be published.
EU tax focus remains focused on competitiveness, harmonisation and simplification, reducing administrative burden and increasing faster payments.
The Swiss post-trade council has published draft T+1 recommendations for Switzerland and Lichtenstein and will open market consultation on 10 December 2025.
Item 7: AOB
No further business.
Attendees
Nina Moylett, M&G Chair
Ina Budh-Raja, BoNY
Devi Aujeet, Barclays
Tim McLeod, Blackrock
Habib Motani, Clifford Chance
Johanne Armita, Goldman Sachs
Jamie Anderson, HSBC
Godfried de Vidts, ICMA
Andrew Dyson, ISLA
Harpreet Bains, JP Morgan
Tim Smollen, MUFG
Simon Dunderdale, M&G Plc
Matt Neville, State Street Global Markets
Alan Barnes, FCA
James Hickling, DMO
Davina Stickland, Blackrock (Tax & Regulatory sub-committee)
Caroline Dawson, Clifford Chance (Tax & Regulatory sub-committee)
Shikha Kalra, HSBC (Tax & Regulatory sub-committee)
Adrian Dale, ISLA (Tax & Regulatory sub-committee)
Christy Stagemeyer, Norges Bank IM (Tax & Regulatory sub-committee)
Bank of England
Simon Dolan, Bank of England
Trinity Frost, Bank of England
Kirstine McMillan, Bank of England
Apologies
Adam Jacobs-Dean, AIMA
Andy Krangel, Citi
Krishan Chada, Morgan Stanley
Morten Gevoll, Norges Bank IM