Euroclear, HSBC to launch automated FX service for T+1 settlement

Euroclear and HSBC have announced a strategic collaboration to launch AutoFX, a new automated FX service designed to support Euroclear's clients as European and UK securities markets prepare to move to T+1 settlement.

AutoFX embeds clients' FX execution directly into the settlement process, automatically sourcing the required currency to reduce operational risk, enhance settlement certainty, and streamline cross-border settlement activity.

The anticipated transition to T+1 in October 2027 for Europe and the UK will shorten the post-trade window, requiring firms to complete funding, liquidity, and FX activities more quickly, increasing the need for automation.

AutoFX will integrate FX conversion and execution for more than 30 currencies directly into securities settlement, enabling Euroclear's clients to manage cross-currency transactions more efficiently.

The service will offer real-time visibility through an execution dashboard, intraday FX fixing points aligned with settlement schedules across time zones, transparent pricing, and enhanced liquidity optimization to reduce excess funding requirements. AutoFX will be available in early 2027.

This initiative links Euroclear's settlement infrastructure to HSBC's global FX pricing, conversion, and liquidity capabilities, providing a streamlined solution for cross-currency settlement as markets shift to shorter cycles.

Sebastien Danloy, Chief Business Officer at Euroclear, said: "The move to T+1 is one of the most significant changes to Europe's post-trade landscape in decades. It requires firms to modernise and automate their processes. By partnering with HSBC, we are extending our settlement offering with integrated FX services that help clients improve settlement certainty and confidently adapt to a faster settlement environment."

Vincent Bonamy, Head of Global FX Services at HSBC, said: "This first-of-its-kind FX service for Euroclear will help pave the way for enhanced FX solutions across our industry on a global scale. As part of our Global FX Services offering, we have developed a broad range of FX solutions across the full FX value chain."