Euroclear鈥檚 CREST to support same-day settlement for SLRs
13 January 2026 UK
Image: Lemonsoup14/stock.adobe.com
Euroclear has confirmed that stock loan returns (SLRs) for lending and collateral will be eligible for same-day settlement within the firm鈥檚 settlement system, CREST.
The move, which comes into effect on 15 June 2026, reflects current market developments and supports the UK鈥檚 transition to a T+1 settlement cycle in 2027.
SLRs can be settled on the same business day as the original stock loan, removing the prior requirement to defer settlement until the following business day.
This change looks to not only benefit the settlement of underlying trades but also collateral movements.
To support these changes, new control measures have been implemented, including lender approvals 鈥� for a same day SLR to settle, the lender must explicitly accept the return by raising the settlement priority in the CREST system.
This ensures that same day returns only occur with bilateral agreement, giving lenders full control over the process.
In terms of measures relating to operational note 鈥� if the lender does not approve the same day return, the SLR will be available on the next business day as per current practice.
The International Securities Lending Association (ISLA) is supportive of these changes and has actively engaged with Euroclear through ISLA Working Groups and the UK AST T+1 working group to ensure that the solution aligns with ISLA member consensus and operational readiness.
Commenting on the news, Chris Elms, Euroclear UK and International CEO, says: 鈥淔ollowing extensive engagement with the UK stock lending market and in partnership with the T+1 Accelerated Settlement Taskforce and ISLA, we are very pleased to be introducing a milestone for the UK securities finance market with same-day settlement for stock loan returns in CREST.
鈥淭his enhancement supports the UK鈥檚 transition to T+1 in 2027, improving liquidity, strengthening risk management, and increasing operational flexibility for both securities lending and collateral management.鈥�
The move, which comes into effect on 15 June 2026, reflects current market developments and supports the UK鈥檚 transition to a T+1 settlement cycle in 2027.
SLRs can be settled on the same business day as the original stock loan, removing the prior requirement to defer settlement until the following business day.
This change looks to not only benefit the settlement of underlying trades but also collateral movements.
To support these changes, new control measures have been implemented, including lender approvals 鈥� for a same day SLR to settle, the lender must explicitly accept the return by raising the settlement priority in the CREST system.
This ensures that same day returns only occur with bilateral agreement, giving lenders full control over the process.
In terms of measures relating to operational note 鈥� if the lender does not approve the same day return, the SLR will be available on the next business day as per current practice.
The International Securities Lending Association (ISLA) is supportive of these changes and has actively engaged with Euroclear through ISLA Working Groups and the UK AST T+1 working group to ensure that the solution aligns with ISLA member consensus and operational readiness.
Commenting on the news, Chris Elms, Euroclear UK and International CEO, says: 鈥淔ollowing extensive engagement with the UK stock lending market and in partnership with the T+1 Accelerated Settlement Taskforce and ISLA, we are very pleased to be introducing a milestone for the UK securities finance market with same-day settlement for stock loan returns in CREST.
鈥淭his enhancement supports the UK鈥檚 transition to T+1 in 2027, improving liquidity, strengthening risk management, and increasing operational flexibility for both securities lending and collateral management.鈥�
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
