European T+1 Industry Task Force publishes Roadmap for Adoption of T+1 in EU securities markets
14 October 2024 The European T+1 Industry Task Force, which includes ICMA along with 20 other trade associations, has today published a report outlining its preliminary analysis on the regulatory, technical, and operational changes required to facilitate a successful transition to T+1 in EU securities markets.
The Task Force is generally supportive of the EU moving to T+1, but also acutely aware of the complexity of the exercise in the EU, which will require a significant effort from all sides, and will have to be reflected in the relevant timelines of the project. The report highlights that a successful transition requires further industry focus on improving the efficiency of existing post-trade processes and continued work to remove remaining post-trade barriers. While further in-depth impact analysis is required, the report suggests that once a firm decision has been communicated, a transition period of between 24 and 36 months will be necessary, reflecting the complexity of the capital markets landscape in Europe.
As a next step, the Task Force recommends that EU public authorities provide a mandate for a broad industry stakeholder group to take forward the next phase of work, which should be closely coordinated with key regional partners including the UK and Switzerland.
The report has already been shared with ESMA as input to their own report on T+1 and related recommendations, which is expected by mid-January and will be the basis for a political decision on T+1 in the EU. ICMA has been closely involved in the discussions around the shortening of the settlement cycle, both in the EU and the UK and will continue to actively contribute to the discussion.
