HSBC and Euroclear will launch AutoFX, a new automated foreign-exchange service for Euroclear clients as European and UK securities markets prepare to move to T+1 settlement.
AutoFX embeds currency conversion directly into the settlement process – automatically sourcing the required currency to help them reduce their operational risk, while supporting settlement certainty and streamlining cross-border settlement activity. The service will be available from early 2027.
The anticipated transition of the European Union and the United Kingdom to T+1 in October 2027 will reduce the time between trade execution and settlement, improving market efficiency, reducing counterparty risk and strengthening resilience.
At the same time, the compressed post-trade window will require firms to complete funding, liquidity and FX activities more quickly, increasing the need for greater automation across the settlement process.
AutoFX will integrate FX conversion and execution, initially for more than 30 currencies, directly into the securities settlement process, thereby enabling Euroclear clients to manage cross-currency transactions more efficiently.
Real-time visibility
The service will offer clients real-time visibility over FX activity through an execution dashboard, access to intraday FX fixing points to align with settlement schedules across time zones, transparent pricing and enhanced liquidity optimization capabilities, designed to reduce excess funding requirements.
This initiative will link Euroclear infrastructure to HSBC’s global FX pricing, conversion and liquidity capabilities. As a result, Euroclear will be able to offer its clients a streamlined solution for managing cross-currency settlement activity as markets move to shorter settlement cycles.
Euroclear chief business officer Sebastien Danloy comments: “The move to T+1 is one of the most significant changes to Europe’s post-trade landscape in decades. While it will deliver important efficiency gains for the market, it also requires firms to modernize and automate their processes.
“Our role is to support clients through this transition by achieving the right balance between simplicity and resilience. 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, adds: “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, which has on-the-ground presence in more than 20 markets, we have developed a broad range of FX solutions across the full FX value chain, from front to back.”
