European Commission proposes an amendment the CSDR to shorten the settlement cycle for EU securities transactions from T+1 to T+2
The European Commission has proposed an amendment to the EU Central Securities Depository Regulation (EU Regulation (EU) No 909/2014) (CSDR) to shorten the settlement cycle for EU securities transactions from two business days (T+2) to one business day (T+1). This change aims to enhance the efficiency and competitiveness of EU capital markets, reduce risks, and align with global market practices, which are essential for a well-functioning Savings and Investments Union (SIU). The proposal, following recommendations from the European Securities and Markets Authority (ESMA), seeks to address misalignments with international markets and is set to apply from 11 October 2027, allowing stakeholders time to prepare. The proposal outlines the reasons for this change, including the need to align with global markets, reduce risks, and improve the competitiveness and efficiency of EU capital markets. It also discusses the potential impacts, costs, and benefits of the transition, as well as the necessary steps and coordination required among stakeholders.