The European Securities and Markets Authority (ESMA) has issued a statement outlining the next milestones for firms preparing for Europe’s transition to a T+1 settlement cycle, urging market participants to use 2026 to complete implementation work ahead of the 11 October 2027 go-live date.
ESMA identifies 7 December 2026 as the first key deadline, when new requirements on allocations and confirmations take effect. According to the regulator, firms should use the remaining time to implement changes, conduct testing and verify the readiness of counterparties and service providers across the settlement chain.
Readiness
In its statement, ESMA says firms should not focus solely on internal preparations. Instead, they should “prepare and test their own readiness, and check the readiness of their entire ecosystem, across the entire trading and settlement chain.”
The regulator also reiterates that timely allocations and confirmations will be an important prerequisite for the shorter settlement cycle. It describes the coming months as critical for turning industry planning into operational readiness before the transition in October 2027.
