Euroclear and HSBC launch AutoFX for T+1 settlement

Euroclear and HSBC plan to launch AutoFX in early 2027. The service will integrate automated foreign-exchange conversion and execution with Euroclear’s securities settlement infrastructure and use HSBC’s global FX pricing and liquidity to support firms preparing for the switch to a T+1 settlement cycle in Europe and the UK in October 2027.

AutoFX will initially support more than 30 currencies and will embed FX conversion and execution directly into the securities settlement process so currency conversion occurs during settlement rather than as a separate post-trade step. Clients will have access to an execution dashboard showing real-time FX activity, intraday FX fixing points to align settlement timings across time zones, and transparent pricing alongside tools to optimise liquidity and reduce excess funding needs.

The shift to T+1 shortens the time between trade execution and final settlement, requiring firms to complete funding, liquidity and FX operations more quickly. Automating FX at the point of settlement is intended to remove manual steps that can delay settlement, increase the risk of failed trades or create the need for extra intraday funding.

Technically, AutoFX will link Euroclear’s settlement systems to HSBC’s FX pricing, conversion and liquidity capabilities so currency conversion can occur as part of the settlement flow. Clients will be able to see pricing and execution details in real time and use intraday fixing points to align FX activity with local settlement deadlines.

Sebastien Danloy, chief business officer at Euroclear, noted that the shift to T+1 is among the most significant changes to Europe’s post-trade landscape in decades and said firms will need to modernise and automate processes. He added the partnership with HSBC extends Euroclear’s settlement offering with integrated FX services intended to improve settlement certainty in a faster settlement environment.

The launch follows wider industry work to modernise post-trade infrastructure and automate workflows ahead of the October 2027 T+1 deadline. Market participants that rely on cross-currency funding and manual FX processes will face tighter intraday timing and may adopt integrated services to maintain settlement performance.