The EU, UK and Switzerland should coordinate their approach regarding the move to a T+1 settlement cycle. The European T+1 Industry Task Force stresses this in a news release in response to the UK’s announcement of plans to transition to T+1 by the end of 2027. The task force underscores the importance of aligning timelines across jurisdictions to streamline implementation processes for firms operating across multiple regions.
The UK committee has noted in its own plans that if the EU commits to move to T+1 within a timeframe that aligns with the UK, simultaneous adoption should be considered.
Industry associations within the EU task force represent a variety of market participants, including those from the buy-side, sell-side, and market infrastructures sectors. “Our shared ambition is for a low-cost, efficient, safe, resilient and integrated post-trade environment which supports globally competitive European securities markets, with high levels of automation and standardisation,” states the group.
The task force has conducted analysis on the potential impacts of the US migration to T+1 in May 2024 and has begun assessing the implications of a potential EU shift to T+1. Additionally, the European Securities and Markets Authority (ESMA) recently published a report regarding shortening the settlement cycle. While ESMA confirmed it won’t pursue an immediate shift to T+0, it committed to ongoing industry engagement and plans to release another report before 17 January 2025.