The European Parliament has adopted a legislative resolution, amending Regulation (EU) No 909/2014 to mandate securities settlement within one business day of trading (T+1), replacing the existing two-day requirement. The regulation, which exempts certain documented securities financing transactions, will come into effect on 11 October 2027. This change is designed to reduce counterparty risks, align the EU with global markets transitioning to T+1, and bolster the competitiveness of the EU capital markets. The European Securities and Markets Authority will oversee settlement efficiency throughout the transition period.