Euroclear, HSBC Unveil AutoFX: Automated Foreign Exchange Service for Cross-Currency Settlement

Euroclear and HSBC are teaming up to launch AutoFX, an automated foreign exchange service designed to help clients manage cross-currency transactions more efficiently. The service will integrate FX conversion and execution directly into the securities settlement process, initially supporting over 30 currencies. This collaboration aims to support Euroclear's clients as European and UK markets transition to T+1 settlement in October 2027.

The move to T+1 will reduce the time between trade execution and settlement, improving market efficiency and reducing counterparty risk. However, it also requires firms to complete funding, liquidity, and FX activities more quickly, increasing the need for greater automation across the settlement process.

AutoFX will offer clients real-time visibility over FX activity through an execution dashboard, access to intraday FX fixing points, transparent pricing, and enhanced liquidity optimisation capabilities. This streamlined solution is expected to reduce excess funding requirements and support a more harmonised settlement landscape.