Economic and Monetary Affairs Committee approves amendment to the CSDR—shortening the settlement cycle for transferable securities
The European Parliament’s Economic and Monetary Affairs Committee has approved an amendment to the Central Securities Depository Regulation (Regulation (EU) 909/2014) (CSDR) that shortens the settlement cycle for securities transactions on trading venues from two business days (T+2) to one business day (T+1). The Committee, which recorded 48 votes in favour and 4 abstentions, noted that the change would reduce risks and improve liquidity, while bringing EU practices into line with global standards. The amendment also allows for same-day settlements (T+0) when possible and exempts certain complex transactions from the T+1 rule. Furthermore, the European Securities and Markets Authority has been tasked with monitoring the transition and assessing the potential for future further shortening of the settlement cycle. These changes are set to take effect from 11 October 2027, subject to final negotiations with the Council.