Regulation Financiere
ESMA Urges Firms to Prepare for Faster 'T+1' Settlement
The European Securities and Markets Authority (ESMA) has issued a public call for financial firms to finalize preparations for a shorter securities settlement cycle. The move to "T+1" means transactions will be settled one business day after the trade is executed, down from the current two-day standard (T+2). ESMA highlights that this shift will reduce credit and market risks in the financial system but requires significant operational adjustments. The regulator is urging firms to complete their system changes and testing to ensure a smooth transition ahead of upcoming deadlines.
Your investments will soon settle faster, as the EU pushes for a "T+1" cycle to reduce market risk.