The Council of the EU has published a text of the amendment to the Central Securities Depositories Regulation (CSDR) to shorten the settlement cycle to T+1. The draft regulation covers most securities traded on EU trading venues but “would not prevent central securities depositories from voluntarily settling transactions on the same date as the trade date (T+0), where technologically feasible”.
The Council acknowledges that certain sercurities financing transactions that are executed on trading venues should fall within the scope of T+1, but their non-standardised nature might make compliance difficult. Exemption has thus been allowed for securities financing transactions documented as single transactions composed of two linked operations. Additionally, an explicit exemption is not required for margin lending transactions as the Council does not consider them to be transactions in transferable securities. They therefore fall outside the scope of T+1.
The Council will move to formally adopt the draft regulation. It will enter into force on the 12th day following its publication in the Official Journal of the EU and will apply from 11 October 2027.
