EU sets October 2027 deadline for single-day trade settlement shift
ESMA urges EU firms to accelerate preparations for the T+1 settlement cycle, with key deadlines in 2026 and final implementation on Oct 11, 2027.Summary
The European Securities and Markets Authority (ESMA) has issued a statement urging market participants across the EU to speed up their preparations for the transition to a T+1 settlement cycle, which will move securities transactions from a two‑day to a one‑day settlement period. The regulator highlighted that 2026 is a critical year for technical and operational readiness, with the final implementation set for October 11, 2027. ESMA noted that readiness surveys show generally strong awareness but uneven progress across markets, sectors and firms, and stressed the need for close cooperation between industry and supervisory authorities. The authority also announced that new regulatory requirements, including amendments to Commission Delegated Regulation (EU) 2018/1229, will come into force on December 7, 2026, and that firms must incorporate these alongside industry recommendations. ESMA warned that insufficient preparation could expose firms to operational and reputational risks, and that persistent failures could lead to counterparties trading less frequently with them. The regulator concluded that no firm can prepare in isolation and urged participants to test the entire trading and settlement chain early to identify defects before the October 2027 go‑live.
(Source：Cyprus Mail)