The Committee’s report contains recommendations for market participants in the EU and EEA for transitioning to a shorter settlement cycle
In May 2024, the United States, Canada and Mexico will move to a shortened settlement cycle for security transactions. Starting from May, transactions in those markets will settle on a T+1 basis. The impacts of this change will be felt well beyond those markets given the size of the global investor base in US securities. EFAMA has been engaged in understanding the broader impacts, contributing to the industry’s preparedness, and maintaining a regular dialogue with regulators.
At the same time, both the UK and EU are reviewing their settlement cycles with a view to aligning with the United States. EFAMA is actively contributing to this effort. This is a complex task given on the one hand, the diversity and number of infrastructure providers in Europe and on the other, a UST1 reality which in itself will generate significant costs due to global misalignment.
Publication
T1 Settlement
Capital Markets Union
Competitiveness
30 June 2025
High-Level Roadmap to T+1 Securities Settlement in the EU
The EU T+1 Industry Committee has published its High-Level Road Map for the transition to a T+1 settlement cycle for securities on 11 October 2027.
Statement
T1 Settlement
22 January 2025
Chair of the European T+1 Industry Committee welcomes the official launch of the governance structure for the transition to T+1 Settlement Cycle
Today the European Securities and Markets Authorities (ESMA) hosted the T+1 Governance Launch Meeting to present the arrangements for driving the move to the reduction of default settlement cycles to T+1 for EU securities markets.
Press Release
T1 Settlement
15 October 2024
European move to T+1 settlement crucial for asset managers
European asset managers welcome the joint statement from the European Commission, ESMA and the ECB putting a firm foot forward, and ‘accelerating the technical work’ needed to prepare the EU’s T1 transition
Publication
T1 Settlement
14 October 2024
High-Level Roadmap for Adoption of T+1 in EU Securities Markets
The European T+1 Industry Task Force, comprising 21 trade associations involved in European capital markets, was established in 2023 to bring together a diverse group of industry stakeholders who would be impacted by a move to a default T+1 settlement cycle for securities traded and settled in the EU.
Statement
T1 Settlement
09 April 2024
European T+1 Industry Task Force comments on recent UK report on moving to T+1
“The European T+1 Industry Task Force welcomes the recent publication of a report by the Chair of the UK Accelerated Settlement Task Force, and in particular the statement that the “UK and other European jurisdictions should continue to explore opportunities for close collaboration…to see if they can align their moves to T+1.” The members of the European T+1 Industry Task Force emphasise the need for a coordinated approach between the EU/EEA, Switzerland and the UK.
Policy position
T1 Settlement
14 March 2024
Impacts of the US move to T+1 settlement in Europe
How to avoid a new Herstatt crisis?
It has been a while since Herstatt risk has been referenced in financial circles and certainly in the mainstream media, however, it is something that the European fund management industry is concerned about as the deadline for shortening the US settlement cycle draws near.
Press Release
T1 Settlement
14 March 2024
US move to T+1 creates FX settlement risks for European asset managers
EFAMA research estimates that 40% of daily FX flows are at increased risk
Policy Position
T1 Settlement
19 December 2023
Shortening the settlement cycle
EFAMA is pleased to share its response to the ESMA Call for Evidence on shortening the settlement cycle. In light of the imminent US move to T1, EFAMA supports a timely transition to T1 for Europe, while calling for a dynamic roadmap which can be adapted and modified as lessons from the US migration become known.
