The Committee on Economic and Monetary Affairs (ECON) has published a draft report on a proposal to amend the Central Securities Depositories Regulation (CSDR) in anticipation of the shortening of the settlement cycle in the EU. The report states agreement and encourages the European Parliament to adopt the proposal without amendments.
ECON points out that market participants in the EU currently face additional costs due to misalignment with countries such as the US, China, India, and Canada, who have already adopted T+1. Shortening the settlement cycle in the EU is thus an “important step in maintaining the EU’s competitiveness in global financial markets” and should “contribute to the development of a more efficient post-trading landscape in the EU”.
