EU Proposes October 2027 for T+1 Settlement Cycle Migration

The European Securities and Markets Authority (ESMA) has proposed 11 October 2027 as the ideal date for the EU to shift to a T+1 settlement cycle. This initiative is designed to enhance efficiency and resilience in post-trade processes, aligning with global markets and improving settlement efficiency within the EU. ESMA advocates for a coordinated transition with other European jurisdictions. The implementation plan consists of three phases: completing technical solutions by Q3 2025, rolling out the changes by the end of 2026, and conducting tests in 2027. This schedule aligns with the UK’s suggested migration date, which could help achieve a synchronized transition across Europe.

Source: ESMA Press Release