HSBC and Euroclear launch AutoFX for T+1

HSBC and Euroclear announced a new automated foreign exchange service called AutoFX last week. The service is built to address the compressed settlement timeline that will take effect when Europe, the UK, and Switzerland move to a T+1 standard on 11 October 2027.

Under T+1, a securities trade settles one business day after execution, replacing the current T+2 standard. This shift, already implemented in the US, Canada, and Mexico in May 2024, removes a full day from the post-trade process. The tighter window increases pressure on the foreign exchange leg of cross-border trades, where missing a currency conversion can lead to a failed and costly settlement.

How AutoFX works

AutoFX links Euroclear's settlement infrastructure directly to HSBC's FX pricing, conversion, and liquidity desks. This integration embeds the FX execution inside the settlement process itself, eliminating it as a separate manual step. The service is scheduled to launch in early 2027 and will cover more than 30 currencies initially.

Clients will get access to a real-time execution dashboard and intraday FX fixing points timed to settlement schedules across different time zones. The service also includes liquidity optimisation features designed to reduce excess funding requirements.

Sebastien Danloy, Euroclear's chief business officer, described the move to T+1 as "one of the most significant changes to Europe's post-trade landscape in decades." He stated that the partnership with HSBC helps clients "improve settlement certainty and confidently adapt to a faster settlement environment."

A competitive race to automate

AutoFX is not the first service of its kind. Euroclear's main rival, Clearstream, launched a comparable offering called Auto FX for Securities Settlement on 2 January 2026. That service automatically links client securities instructions to Clearstream's own FX service with synchronised settlement dates.

State Street was earlier still, launching its StreetFX platform in October 2023 ahead of the US T+1 switch. That platform connects to the DTCC's trade-matching system and automatically executes the FX needed to fund a matched securities trade at the client's next scheduled window.

The shift from standing instructions

The automation push is not entirely new behaviour. Large custodians like BNY Mellon and State Street have long used standing instructions, which are pre-agreed client rules allowing for automatic FX execution without a manual order each time. However, the T+1 deadline has forced the industry to move this model into dedicated, purpose-built infrastructure. The old buffer for manually resolving FX issues has effectively disappeared.

The announcement from HSBC and Euroclear confirms that FX execution is now moving inside the settlement pipeline itself, rather than operating as a separate, adjacent step.