Council of the EU approves mandate to shorten settlement cycle for transferable securities

Article summary

The Council of the European Union has approved a negotiating mandate on a European Commission proposal aimed at shortening the settlement cycle for transferable securities from two business days (T+2) to one business day (T+1) under the EU Central Securities Depositories Regulation (Regulation (EU) 909/2014). The Council of the EU’s proposal  differs from that of the Commission in that it seeks to exempt securities financing transactions from the change. Interinstitutional negotiations with the European Parliament are to commence in order to reach a common position, with the new rules scheduled to take effect on 11 October 2027.