EU agrees to shorten securities settlement cycle to T+1 under CSDR amendment
The Council of the EU and the European Parliament have provisionally agreed to amend the EU Central Securities Depositories Regulation (CSDR) (Regulation (EU) 909/2014) to shorten the standard settlement cycle for securities transactions executed on EU trading venues, from two business days (T+2) to one business day after the trade date (T+1). The change, proposed by the European Commission on 12 February 2025, aims to improve post-trade efficiency, align EU practices with global markets, and enhance the competitiveness of EU capital markets. An exemption will apply to certain securities financing transactions (SFTs), provided they are documented as single transactions comprising two linked operations. The new rules are expected to be formally adopted and will apply from 11 October 2027.