Euroclear Advances Same-Day Settlement For Stock Loan Returns, Improving Operational Efficiency

Euroclear Advances Same-Day Settlement For Stock Loan Returns, Improving Operational Efficiency
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A major operational development in the UK securities finance market is underway as Euroclear confirmed that starting 15 June 2026, stock loan returns (SLRs) can be settled on the same business day within the CREST system. This update aligns with the UK’s broader transition to a T+1 settlement cycle scheduled for 2027. Under the new framework, lenders must explicitly approve same-day returns by prioritizing settlement in CREST, otherwise returns follow the traditional next-day timeline.

For collateral managers and stock loan desks, same-day settlement of SLRs represents an incremental but meaningful improvement in operational workflow. Faster settlement reduces the lag between recall instruction and finality, tightening the feedback loop around inventory adjustments and collateral movements. It also places a premium on reconciliation discipline; operational teams that can capture intraday positions precisely will benefit from reduced settlement risk and more predictable inventory availability. Over time, faster SLR settlement may influence funding efficiency and risk management practices across lending desks as workflows adapt to higher intraday throughput.

Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=228411

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