EU Council and Parliament Agree on T+1 Settlement Cycle for Securities

The European Union has taken a decisive step toward modernizing its financial markets. The Council and European Parliament reached a provisional agreement to shorten the settlement cycle for securities transactions from T+2 to T+1. This MOVE aligns EU markets with global counterparts already adopting faster settlement times.

Polish Finance Minister Andrzej Domanski hailed the agreement as a victory for market efficiency. "Faster settlements mean stronger markets and a more competitive EU," he stated. The change builds upon the 2014 Central Securities Depositories Regulation that originally established T+2 as the EU standard.

Notably, securities financing transactions (SFTs) will remain exempt from the new settlement timeline. This exemption preserves liquidity options for market participants while streamlining standard equity and bond transactions.