The European Central Bank (ECB) has received requests from the Council of the European Union and European Parliament to share its opinion on a proposal to amend the Central Securities Depositories Regulation (CSDR) in anticipation of a transition to a shorter settlement cycle. The ECB expresses agreement.
The ECB writes that it “welcomes the proposed regulation’s objective of reducing the maximum duration of the settlement cycle as regards certain transactions in transferable securities from two business days to one business day after the trade date, commonly referred to as T+1”.
It agrees with the point made in the proposal that “fast, efficient and reliable settlement is an essential precondition for developing the Savings and Investments Union”. The change is expected to “facilitate achievement of the objective of further promoting settlement efficiency in the union” and “reduce impacts associated with misalignment with other major global jurisdictions where similar reforms have been carried out”.
The requests were received on 13 March 2025 from the Council of the European Union and 24 March from the European Parliament.
