T+1 Settlement

Thought Leadership

21 Oct

In the modern fast-paced capital markets, every second counts. Imagine executing a trade in Frankfurt, affirming it in Luxembourg, and seeing assets delivered in a matter of hours.

That’s the promise of the emerging rollout of T+1 Settlement across the European Union and UK. Slated for full effect by October 2027, this regulatory leap doesn’t just align the European markets with heavyweight counterparts such as the US, Canada and India; it rewrites the pace and risk profile of securities trading across the entire continent.

With the regulatory countdown ticking, and significant markets already settling at T+1 speed, European markets stand on the brink of one of their boldest operational transformations. For institutions ready to adapt, the era of resilient, real-time settlement is about to commence. For those standing still, it’s time to catch-up

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Authors

Author Profiles Database

Chris Turner

Senior Consultant

Moray Strang

Manager

T+1 Settlement

The introduction of T+1 Settlement represents a fundamental shift in operational tempo and risk management.

The reduced settlement cycle to one business day substantially tightens the timeframes for post-trade processes, impacting trade allocation, confirmation, affirmation, funding, securities lending, settlement and reconciliation. Each phase of the transaction cycle needs to be executed faster and with greater accuracy to avoid increased penalties and settlement failures.

Roadmap: What Does EU T+1 Settlement Entail?

2025-2026: Laying the Foundation
2026-2027: Building & Testing
2027: Go-Live & Harmonisation

Throughout this multi-year journey, successful execution requires strategic planning, robust governance, technology adoption, and sustained market engagement. Ongoing investor education, close work with regulators, scenario testing, and a commitment to post-implementation review will be decisive for banks striving not just for compliance, but for operational and commercial advantage in the fast-evolving European settlement landscape

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