Publication of ESMA's final report on the transition to T+1 in the European Union

While ESMA's preliminary report published last March suggested a potential move to T+1, the final report, available since November 18, 2024, leaves no room for the conditional. Not only is the move to T+1 in Europe now a fact, but it also even has a date (admittedly, this is only a proposal from the regulator; to become official, it will have to go through a legislative process). It is true that the joint press release issued by ESMA, the European Commission and the ECB had already set the tone by announcing the establishment of a governance structure dedicated to this project.

According to ESMA, the changeover will therefore take place on October 11, 2027, certainly in order to prioritize alignment with the UK, which has not yet officially declared its D day.

By announcing a precise date, ESMA is showing that it is convinced that all the prerequisites (adaptation of processes, automation, changes in market practices, etc.) will be easily achievable. The more detailed studies that remain to be carried out both on subjects common to all 27 countries and on “local specificities” will confirm the feasibility of the T+1 move within the proposed timeframe.

Final report: ESMA74-2119945925-1969 Report on ESMA assessment of the shortening of the settlement cycle in the European Union

Preliminary report: ESMA74-2119945925-2085 Shortening the standard securities settlement cycle in the European Union: next steps