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The UK’s Accelerated Settlement Taskforce has recommended a two-phased approach to shortening the settlement cycle beginning with operational changes in 2025 and a full transition by the end of 2027. This is a major project that will keep the UK at the forefront of technology in capitalmarkets.
In a new report, the task force stated that this followed a range of views being expressed as to whether the date identified for the UK transition, H2 2027, could also be a feasible implementation date for the EU.
One other point was that there should be a recommendation, but not a regulatory requirement, to transition the mutual fund subscription and redemption settlement cycle to T+2 from the common T+3/4 in the UK and other popular EEA fund jurisdictions to coincide with the UK, EU and Swiss transition to T+1 in capitalmarkets.
Europe’s top markets watchdog has signalled its intentions for moving EU markets to a T+1 settlement cycle through a statement outlining both the urgency of acting and the preference for aligning with the UK and Switzerland.
Following the US shift to T+1 settlement in May, the UK is gearing up for a 2027 shift and set to benefit from “second mover advantage” according to Andrew Douglas, chair of the T+1 technical group (TGT) of the UK Accelerated Settlement taskforce (AST).
Despite worries in the lead up to the monumental shift, many have managed to adapt their workflows to evade issues across the ETF market, securities lending and FX alike, while adapting to affirmation and central trade matching platforms to achieve straight through processing. We’re in a suboptimal place with global misalignment.
The European Securities and Markets Authority (ESMA) has proposed a move to T+1 in the EU by Q4 2027 – in line with the UK. Published in the watchdog’s final T+1 recommendations, ESMA recommends that the migration to T+1 occurs simultaneously across all relevant instruments – with a coordinated approach across the continent “desirable”. In a (..)
Euronext Amsterdam, Brussels and Paris are set to designate Euronext Securities as the central securities depository (CSD) for the settlement of equity trades from September 2026. Stephane Boujnah The three markets join Euronext markets in Lisbon, Milan and Oslo, which Euronext Securities already provides support for.
BME has announced a reform to Spain’s securities settlement system to improve efficiency, align the Spanish market with European standards, and prepare it for the T+1 settlement cycle by 2027. This migration claims to reduce risks by improving market efficiency.
The European Securities and Markets Authority (ESMA), European Commission (EC) and European Central Bank (ECB) have launched a new governance structure to support the transition to T+1 settlement within the EU. The first meeting of the coordination committee is scheduled for 6 February.
This partnership marks a significant milestone in Euronexts Innovate for Growth 2027 strategy, reinforcing Euronext Clearings role as a cornerstone of the group’s broader strategic ambitions, said Anthony Attia, global head of derivatives and post-trade at Euronext.
Central clearing will play a key role in this debate, which will be essential for advancing the region’s capitalmarkets, and we look forward to Emir 3.0 The UK has outlined a roadmap targeting Q4 2027, but despite ample time to prepare, significant actions are likely to commence soon. helping in this regard.
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