Euroclear and HSBC Roll Out AutoFX to Automate Currency Conversion for Europe's T+1 Settlement Shift
Euroclear and HSBC Roll Out AutoFX to Automate Currency Conversion for Europe’s T+1 Settlement Shift #
Euroclear and HSBC have announced an automated foreign exchange service called AutoFX to help cross-border investors handle currency requirements under Europe’s upcoming shift to a one-day securities settlement cycle.
Announced on 1 September 2026, AutoFX will embed FX conversion and execution directly into Euroclear’s settlement workflow, automatically identifying and sourcing the currency required for each securities transaction. The service will connect Euroclear’s settlement infrastructure to HSBC’s global FX pricing, conversion, and liquidity capabilities, with a planned launch in early 2027, ahead of the anticipated October 2027 T+1 deadline for European and UK markets.
The service will initially cover more than 30 currencies and give clients real-time visibility over their FX activity through a dedicated execution dashboard. The partnership also plans to offer intraday FX fixing points, allowing currency conversions to be timed around settlement schedules across different time zones, a feature aimed at global asset managers operating across multiple jurisdictions.
The shift from T+2 to T+1 requires cross-border investors to arrange the currency needed to settle a purchase within one business day, down from two. Switzerland has also indicated plans to align its timeline with the European and UK transition.
According to the companies, AutoFX is designed to reduce the need for excess funding by improving liquidity optimisation within the settlement process. Neither firm provided specific estimates of potential client savings. Euroclear’s Chief Business Officer, Sebastien Danloy, said the T+1 shift “requires firms to modernise and automate their processes.”
AutoFX extends the integration between post-trade infrastructure and FX services as firms across the industry move to automate settlement-related processes ahead of shorter regulatory timelines. Euroclear is one of the world’s two main international central securities depositories alongside Clearstream and processes trillions of euros in securities transactions annually.
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