Brussels: The European Commission has expressed approval for the recent political agreement achieved by the European Parliament and the Council to amend the Central Securities Depositories Regulation. This amendment will reduce the settlement cycle for EU securities from two days to one, with the change set to be implemented by 11 October 2027.
According to Cyprus News Agency, the settlement cycle refers to the time between the trade date and the settlement date when buyers receive securities and sellers receive payment. The move from a T+2 to a T+1 cycle aims to increase efficiency and resilience in EU capital markets, aligning with the objectives of the Savings and Investments Union. The shift will minimize risks for buyers and sellers, reduce waiting times for investors, and eliminate costs related to differing settlement cycles with other regions that have already adopted T+1.
Maria Lus Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, has highlighted the importance of the agreement, noting that it enhances the attractiveness and competitiveness of EU capital markets. The amendment provides legal certainty regarding the transition date to T+1, allowing market participants ample time to prepare. The European Commission will continue collaborating with EU authorities and the financial industry to ensure the successful implementation of T+1.