A newly published guide from Citi and ValueExchange outlines practical questions firms should address as European markets prepare to shorten the securities settlement cycle to T+1. The T+1 Implementation Guide for European markets summarises industry discussions and benchmarking carried out in January 2026 with market participants and industry bodies. According to the authors, the document aims to help firms build their internal plans ahead of the scheduled transition on 11 October 2027.
The guide reflects the timeline widely discussed in the industry: planning during 2025, building systems and processes during 2026, and testing during 2027 before the final transition.
Shorter processing windows
Moving to T+1 will remove more than 80 percent of the current settlement processing window, according to the report, requiring firms to review workflows across the trade lifecycle.
The guide highlights several areas where firms are expected to focus preparation efforts, including client onboarding, allocations and confirmations, FX and liquidity management, settlement processes and securities lending.
Automation is also highlighted as a factor in earlier T+1 transitions. Data cited in the report shows Tier-1 firms increased automation by an average of 51 percent when preparing for previous T+1 moves, while firms that did not invest in automation experienced an average 11 percent increase in settlement fails.
Fragmented European market structure
Unlike jurisdictions that have already adopted T+1, the European transition will involve multiple markets and infrastructures. The report notes that the move will affect 29 markets across the EU, the UK and Switzerland, each with its own operational timelines and development plans.
This fragmentation means firms will need detailed visibility into the implementation plans of central securities depositories, custodians and other market infrastructures in order to maintain smooth trading and settlement processes across jurisdictions.
The guide also stresses that preparation goes beyond technology upgrades, requiring firms to examine data quality, client communication, funding arrangements and testing plans as part of their readiness for the shorter settlement cycle.
