Euroclear and HSBC launch AutoFX for T+1 FX settlement

Euroclear and HSBC announced AutoFX, an automated foreign-exchange service that embeds currency conversion into securities settlement. The service is scheduled to launch in early 2027 and is intended to help clients meet the industry shift to T+1.

AutoFX links Euroclear’s settlement infrastructure with HSBC’s FX pricing, conversion and liquidity desks so currency conversions execute in real time as part of matched settlement instructions. At launch it will cover more than 30 currencies, provide a real-time execution dashboard, offer intraday fixing points timed to settlement windows across time zones and apply liquidity optimisation to reduce excess funding needs.

T+1 shortens the settlement cycle from two business days after trade execution to one. Europe, the United Kingdom and Switzerland will move to T+1 on October 11, 2027; the United States, Canada and Mexico made the switch in May 2024. The shorter window reduces the time available to confirm trades, source liquidity and convert currencies; any delay in the FX leg can cause a trade to fail to settle on time.

AutoFX will run on Euroclear’s settlement platform and execute conversions in sync with matched securities instructions. Clients will be able to monitor execution in real time and use intraday fixing points to align FX rates with settlement schedules. Euroclear expects the integration to shorten the time between trade execution and the FX required to fund cross-currency settlements.

The rollout follows similar services from other post-trade providers. Clearstream launched an Auto FX for Securities Settlement service on January 2, 2026. State Street introduced StreetFX in October 2023, connecting to a US trade-matching system to automatically execute FX for matched trades. Large custodians have long used standing instructions to run FX automatically; the T+1 deadline has moved those arrangements into dedicated infrastructure.

Sebastien Danloy, Euroclear’s chief business officer, described the shift to T+1 as ‘one of the most significant changes to Europe’s post-trade landscape in decades,’ adding that the partnership with HSBC will help clients ‘improve settlement certainty and confidently adapt to a faster settlement environment.’ Market participants expect AutoFX and rival services to become standard for cross-border trades as the October 2027 deadline approaches, and firms that trade in multiple currencies will need to adjust systems and liquidity arrangements to meet narrower settlement windows and avoid the costs and disruption of failed settlements.