鈥淚 don't like coffee. I don't like hot drinks,鈥� Andrew Douglas grins above a vanilla milkshake. 鈥淚've never, ever drank tea. I've had one cup of coffee in my life, which was when I was at university. I can't even eat tiramisu. I can't eat coffee chocolates. It makes me gag.鈥�
It is typical of the chair of the UK T+1 Task Force Technical Group to offer a moment of light-heartedness in the midst of more formal settings. Whether speaking at a conference, industry event or across from me at the Ned hotel in London, Douglas has always favoured a more laid-back approach.
As the man entrusted to steer the UK financial markets towards a shift to a shorter settlement cycle on 11 October 2027, this attitude has become invaluable.
鈥淚f I run around with my hair on fire, that's not going to help anybody,鈥� he explains. 鈥淚 might go home, and I might express my concerns to my wife, but you would never know that I'm stressed or panicked unless I'm sat there and I suddenly have a massive nosebleed.鈥�
Hiding his concerns, no matter how large, is a skill he has developed. 鈥淚've always used humour as a protection mechanism. It disarms people, and it helps you build relationships with people. I try to be as authentic as I can and I like people to think that when people meet me, what they see is what they get. This is me. I don't feel I've got anything to hide.鈥�
Given the importance of his role, does Douglas not feel pressure? 鈥淚f I was feeling pressure, you wouldn't know,鈥� he replies with a shrug. 鈥淲hat is critical in these sorts of situations is that even if you are feeling under pressure, you need to demonstrate control. People are looking to you to show that things are in control.鈥�
Douglas鈥� ability to remain cool, calm and collected is a culmination of years spent working in the financial industry, but it may not have always been this way. He explains that he had initially been set on entering the retail sector, and had lined up a job at the supermarket chain Sainsbury鈥檚, before being coaxed into attending a Citibank talk by free food and drink as a student.
The talk, combined with a difficult and dissuading spell working as a metallurgist at a South African industrial plant, was enough to convince Douglas to enter finance. He worked for Citibank鈥檚 retail bank for two years before switching across to the wholesale banking side and eventually the custody and clearing business.
Three decades later, Douglas was entrusted with leading the T+1 Task Force Technical Group.
Got to have faith
鈥淚 was flattered that people thought I'd be able to do the job. We always struggle with understanding our own competency,鈥� Douglas explains. He adds that he 鈥渁lways鈥� believed that he could do the job, but admits that he needed a small nudge of encouragement to truly take on the role.
鈥淚 didn't immediately accept,鈥� he says. 鈥淐harlie [Geffen] was very encouraging. I talked to other people and they said I could do it. I went away and I thought about it before saying yes.鈥�
Geffen, who was chair of the Accelerated Settlements Taskforce and the initial driver of the move to T+1, has provided Douglas with immense support and invaluable counsel throughout the process. Douglas explains: 鈥淚'd been Charlie's number two for a year, and then he became my number two, and we very much worked as a team. I've been lucky enough in my career to work with or for some extremely talented people. Charlie is the latest in a long line of those talented people.
鈥淚f I've had any success at all, it's because of the people that I've worked with, whether that's people who've been my boss or, as in the case of the Task Force, the people who act as the workstream leads, they're superb. I'll be honest, I don't have to do very much, I am just the face.鈥�
Despite downplaying his role, Douglas offers a reliable and calming face at the front of an industry-wide movement 鈥� often told by other members of the industry that he appears as if he just 鈥渂reezes through it鈥�.
While it has its challenges, Douglas鈥� enthusiasm for his work is palpable. 鈥淚 feel very lucky to be in this role, because it doesn't feel like a job, it feels like a hobby. I can honestly say, hand on heart, I'm having more fun doing this project than I've had for many years at work. I love the people that I work with, they are some of the smartest and funniest people,鈥� he smiles.
Raising concerns
On the morning of our interview, the Depository Trust & Clearing Corporation (DTCC) released research revealing the cost, complexity, and level of readiness for European T+1. One of the more notable concerns was that 28 per cent of respondent firms had yet to begin planning for the move to T+1.
鈥淚'd be a liar to say it didn't worry me. I'd rather that number was zero, but I am realistic. If we have this conversation in a year's time and that number is still 28 then yes, that will be a problem,鈥� Douglas says. 鈥淭hat will be a problem for those organisations that have not started. I don't think it'll be a problem for the market because the data that we're getting out of Euroclear now shows that a fairly substantial number of people could actually comply with T+1 tomorrow, if necessary.
鈥淚 have no doubt that the UK as a market will get over the line successfully. Will there be some casualties along the way? Yeah, definitely.鈥�
Does Douglas share other concerns of DTCC鈥檚 respondents that misalignment between the UK and Europe could pose a problem? 鈥淚 am not spending time fretting about that at the moment. That is for the simple reason that I work very closely with Giovanni [Sabatini, the independent industry chair leading the EU鈥檚 migration to T+1]. He's got a tough job, but he's getting on with it,鈥� Douglas replies. 鈥淚've worked in Europe since 2000 and rarely have I seen such a united front from the European legislators, regulators, and industry participants.鈥�
Douglas believes that the majority of people know that they cannot afford to miss moving to a T+1 settlement cycle on 11 October 2027. He also states that the industry has made significant progress towards meeting that requirement already, adding that he is 鈥�100 per cent sure that the UK will implement T+1 on the 11 October 2027.鈥�
Becoming a footnote
鈥淚 hope that 11 October 2027 will be a massive non-event because everyone is prepared and already working to a T+1 standard,鈥� Douglas says, 鈥淭he question is do I have anymore to offer?鈥�
The 62-year-old explains that he has been following the Japanese philosophies ikigai (the sense of purpose) and shikata ga nai (letting go of things you cannot control). Douglas believes that through overseeing the movement to T+1, bringing members of the industry together and watching his team grow and develop, he has found his purpose.
鈥淚n a strange sort of way, I feel this is what my 37 years were building towards,鈥� he says. 鈥淭his project gives me the ability to put something back into the industry, to leave it in a better state than I found it.鈥�
Douglas explains that he would rather the move to T+1 be 鈥渘othing more than a footnote in the history of this city鈥�, than it be cause for celebration. Yet, he admits, 鈥淚 want people to think of it as a time when we worked hard, but we had fun and that made it seem less stressful, less painful.
鈥淔or now, it's an important project here and it's one that everyone in the Task Force can be proud of.鈥�
When the industry reaches and achieves a shift to T+1, where will Douglas find his purpose?
Although unsure of his next steps, Douglas says that 鈥淚 don't see this as the last thing that I'll do, because I don't want it to be the last thing that I'll do. I suspect on the 11 October 2027, I'll be looking forward to what's happening on the 12th.鈥�
Douglas looks down at his now finished drink before adding finally: 鈥淚 will probably be having a vanilla milkshake somewhere to celebrate, because I am confident that the industry will deliver.鈥�
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