T1 Settlement
In May 2024, the United States, Canada and Mexico moved to a shortened settlement cycle for security transactions. Transactions in those markets now settle on a T+1 basis. The impacts of this change will be felt well beyond those markets given the size of the global investor base in US securities. EFAMA has been engaged in understanding the broader impacts, contributing to the industry’s preparedness, and maintaining a regular dialogue with regulators.
At the same time, both the UK and EU are reviewing their settlement cycles with a view to aligning with the United States. EFAMA is actively contributing to this effort. This is a complex task given on the one hand, the diversity and number of infrastructure providers in Europe and on the other, a UST1 reality which in itself will generate significant costs due to global misalignment.
European Buy-side Reflections on US T+1: Preparedness and Impact
European move to T+1 settlement crucial for asset managers
European asset managers welcome the joint statement from the European Commission, ESMA and the ECB putting a firm foot forward, and ‘accelerating the technical work’ needed to prepare the EU’s T1 transition
High-Level Roadmap for Adoption of T+1 in EU Securities Markets
The European T+1 Industry Task Force, comprising 21 trade associations involved in European capital markets, was established in 2023 to bring together a diverse group of industry stakeholders who would be impacted by a move to a default T+1 settlement cycle for securities traded and settled in the EU.
European T+1 Industry Task Force comments on recent UK report on moving to T+1
“The European T+1 Industry Task Force welcomes the recent publication of a report by the Chair of the UK Accelerated Settlement Task Force, and in particular the statement that the “UK and other European jurisdictions should continue to explore opportunities for close collaboration…to see if they can align their moves to T+1.” The members of the European T+1 Industry Task Force emphasise the need for a coordinated approach between the EU/EEA, Switzerland and the UK.
High-Level Roadmap for Adoption of T+1 in EU Securities Markets
The European T+1 Industry Task Force, comprising 21 trade associations involved in European capital markets, was established in 2023 to bring together a diverse group of industry stakeholders who would be impacted by a move to a default T+1 settlement cycle for securities traded and settled in the EU.
