Euroclear, HSBC launch AutoFX for T+1 shift

Euroclear and HSBC are collaborating to launch an automated foreign exchange service named AutoFX. The service is designed to help clients prepare for the upcoming shift to a T+1 settlement cycle in Europe and the UK, scheduled for October 2027.

This transition will compress the post-trade window, forcing firms to complete funding, liquidity, and foreign exchange activities much faster. The need for greater automation across the entire settlement process is becoming critical. AutoFX aims to meet that need by integrating FX conversion and execution directly into the securities settlement workflow.

Service Launch and Integration

Set for introduction in early 2027, AutoFX will link Euroclear’s settlement infrastructure with HSBC’s global FX pricing, conversion, and liquidity capabilities. The service will initially support transactions in more than 30 currencies.

Key Features for Clients

The partnership promises several key features for client adaptation. AutoFX will provide real-time visibility over FX activity through an execution dashboard. It will offer access to intraday FX fixing points to help align with settlement schedules across different time zones. The service also commits to transparent pricing and enhanced liquidity optimisation capabilities. These features are designed to reduce excess funding requirements and improve settlement certainty.

Sebastien Danloy, chief business officer at Euroclear, commented on the change. "The move to T+1 is one of the most significant changes to Europe’s post-trade landscape in decades," he said. Danloy noted that while it will bring efficiency gains, it also requires firms to modernise and automate their processes.

The Driving Force: T+1 Transition

The primary driver for this new service is the industry-wide move to shorten the settlement cycle. The anticipated transition to T+1 in October 2027 will reduce the time between trade execution and final settlement from two days to one. This acceleration increases operational risk for firms that rely on manual or batch-processed FX conversions to fund their securities settlements.

By partnering with HSBC, Euroclear is extending its core settlement offering. The integrated FX services are intended to help clients confidently adapt to the faster settlement environment. The launch of AutoFX in early 2027 is strategically timed to provide a runway for testing and adoption before the mandatory T+1 deadline arrives later that same year.