The experts have said it time and again: now that the US is firmly on the path to T+1, the shortening of settlement cycles in Europe is a matter of “when”, not “if”. Now, the European Securities and Markets Authority (ESMA) is seeking comments from stakeholders with a consultation paper that aims to “produce an assessment of the costs and benefits linked to the potential reduction of the securities settlement cycle in the EU”.
In its call for evidence, ESMA has highlighted four issues it would like feedback on: the potential impacts of T+1 on the operations of market players, the benefits and costs of T+1, a timeline and strategy for implementation, and the potential impacts international developments in securities settlement have on the EU’s capital markets.
The deadline for comments closes on 15 December 2023. The feedback received will be submitted to the European Commission in preparation for a final report in Q4 2024 at the latest.