Transition to T+1 settlement of transactions

What is the move to T+1?

The move to T+1 corresponds to the shortening of the settlement cycle (the delivery of securities against payment) of certain transactions executed on trading venues (the “transactions in scope”)

Today, the settlement of the transactions in scope happens no later than on the second business day after the trading takes place (T+2). From 11 October 2027, the settlement of the transactions in scope will happen no later than on the following business day after the trading (T+1).

Which transactions are in scope of T+1 move?

The transactions in scope are mentioned in article 5(2) of regulation (UE) no 909/2014 (« CSDR ») and correspond to transactions on transferable securities executed on traded venues, except for:

• the following transactions that were already excluded from a T+2 settlement and will continue to be excluded with the move to T+1:
• transactions which are negotiated privately but executed on a trading venue;
• transactions which are executed bilaterally but reported to a trading venue;
• the first transaction where the transferable securities concerned are subject to initial recording with a central depository;
• the following transactions, as long as they are documented as single transactions composed of two linked operations:
• securities lending or securities borrowing as defined in article 3(7) of regulation (UE) 2015/2365 of the European parliament and the European Council (« SFTR »);
• buy-sell back transactions or sell-buy back transactions as defined in article 3(8) of SFTR;
• repurchase transactions as defined in article 3(9) of SFTR.

Who is concerned by the move to T+1?

The move to T+1 impacts all the stakeholders directly involved in the settlement chain (central depositary, intermediaries, central counterparties), and their clients (asset managers and other investors).

This move will greatly impact operational processes linked to the settlement of transactions. It is therefore crucial that all the market players identify the impacts on their activities sufficiently in advance to ensure a smooth transition.

Timeline of the move to T+1?

The move to T+1 will enter into application on 11 October 2027 according to regulation 2025/2075 of 8 October 2025 amending CSDR as regard a shorter settlement cycle in the Union.

Which governance for this project at European and national level?

At European level

The move to T+1 follows a specific governance including (i) an Industry Committee composed of experimented industry representatives, (ii) technical workstreams focused on the operational adaptations to be implemented and (iii) a coordination committee composed of the European Securities and Markets Authority’s (ESMA) representatives, European Commission representatives, European Central Bank representatives and the Industry Committee’s Chair.

Focus on the Industry Committee work

The Industry Committee was established by European industry associations and European market players in coordination with ESMA, the European Commission and the European Central Bank to pilot the move to T+1 in Europe.

This Committee aims at preparing and publishing detailed documents on operational, behavioral and regulatory changes that are essential to the move to T+1.

The Industry Committee published in June 2025 a report (High-level Roadmap) providing recommandations to the financial industry in various areas including the trading, clearing, settlement intermediation, custody, asset management, securities lending and repurchase agreements, Forex.

This document is essential to understand the impact of the move to T+1 and rely on an adhere or explain principle according to which the market players will have to explain the reason of the non-adhesion if they do no follow the recommandations.

This committee also published a Handbook detailing the recommandations of the High-level Roadmap and addressing specific operational issues.

Finally, this committee will publish several surveys until the entry into force of the move to T+1 targeting the financial industry and that will be shared by industry associations to their members to better assess market readiness.

At national level

The Banque de France and the AMF established a national working group to (i) gather the feedback of French market players on the French technical and legal specificities with the move to T+1; (ii) have the best communication channels to progress on the move to T+1 notably via industry associations; (iii) follow up on the national implementation.

Several French industry associations are involved in this national working group such as:

• France Post Marché (FPM);
• l’Association Française de la gestion d’actifs (AFG);
• l’Association Française des Marchés Financiers (AMAFI);
• la Fédération Bancaire Française (FBF);
• l’Association Nationale des Sociétés par Actions (ANSA); and
• l’Office de Coordination Bancaire et Financière (OCBF).

Among them, several industry associations structured technical working groups to tackle the impacts in their area of expertise and interact with each other on common issues identified.

Where to find the relevant information linked to the T+1 move?

ESMA dedicated a webpage to the shortening of the settlement cycle to T+1 including an overview of the European governance, its 2024 report on this topic and the Industry Committee High-Level Roadmap.

The Industry Committee has a webpage with several documents issued by the committee.

Finally, relevant Industry associations can publish communications and information for their members.