The European Securities and Markets Authority (ESMA) has opened a consultation on revised guidelines covering standardised procedures and messaging protocols, as part of the regulatory preparations for Europe’s move to T+1 settlement.
The proposed revisions follow amendments set out in ESMA’s Final Report on the Settlement Discipline RTS and focus on allocations and confirmations. According to the consultation paper, the guidelines would be updated to reflect the mandatory use of electronic and standardised communication channels, as well as international messaging standards.
References to non-electronic methods, including oral allocations and confirmations, would be removed, except in cases of temporary technical disruption.
RTS implementation
The revised guidelines are proposed to take effect on 7 December 2026, aligning with the expected application date of the new RTS requirements for allocations and confirmations.
In the consultation paper, ESMA states that the changes are intended to support market participants as settlement timelines shorten under T+1. The regulator notes that standardised electronic communication will be necessary to facilitate timely post-trade processing.
The consultation has been launched before the European Commission’s formal endorsement of the RTS amendments. ESMA says the timing is intended to give firms an opportunity to provide feedback and prepare for implementation.
Next steps
Stakeholders have until 7 July 2026 to respond to the consultation. ESMA expects to publish a final report and updated guidelines in October 2026.
The consultation forms part of the regulator’s broader preparations for the transition to T+1 settlement, scheduled for 11 October 2027.
