The European Securities and Markets Authority (ESMA) has released a statement reminding the industry that the one-year countdown to T+1 has begun. Following the recent publications of two documents under the Central Securities Depositories Regulation (CSDR), the regulatory framework is now finalised and ready to support the transition.
The two documents covered the amendments to the regulatory technical standards (RTS) and the revised CSDR guidelines on standardised procedures and messaging protocols.
In its statement, ESMA calls on market participants to “finalise technical preparations, assess readiness across their entire ecosystems, and begin testing as soon as possible throughout the trading and settlement chain”.
Describing the transition to T+1 as “one of the most impactful recent market structure initiatives”, ESMA’s chair Verena Ross says, “the framework is now in place for all players in the trading and settlement chain to prepare for 11 October 2027. A successful transition is a shared effort by the industry and the public authorities. The focus now shifts to market participants to comply with the regulatory requirements, ready their systems and processes, and test their preparedness for the change, considering the recommendations of the EU T+1 Industry Committee.”