High-level roadmap released for Europe鈥檚 T+1 transition
01 July 2025 Europe
Image: wenich/stock.adobe.com
The EU T+1 Industry Committee has published its High-Level Road Map for the transition to a T+1 settlement cycle for securities on 11 October 2027.
It contains a set of non-legally binding recommendations developed collaboratively by association representatives and workstream leads from various industry segments, and its technical workstreams.
These recommendations are designed to serve as a practical, expert-led framework to assist market participants in identifying and addressing the most critical operational considerations and to support firms鈥� preparations and budget allocations.
Within the 60-page report are 21 securities financing transaction (SFT)-specific recommendations across various trade lifecycle events, including trading, matching and confirmations, and settlement.
More specifically, the report mentions settlement efficiency tool recommendations including auto borrow, auto collateralisation, shaping, and use of transaction type identifiers; intraday liquidity and additional batch requirements; as well as notifications from buy side to lending intermediaries of sales.
Commenting on the release, Giovanni Sabatini, independent chair of the EU T+1 Industry Committee, says: 鈥淸The] publication of the High-Level Road Map and the recommendations included therein marks the kick-off of a complex process to move EU and EEA markets to T+1 on the agreed date of 11 October 2027, in coordination with the UK and Swiss markets.
鈥淲e urge all market participants to review the recommendations, assess the impact on their systems and procedures and start planning how they want to prepare for the transition to T+1鈥�.
According to Sabatini, a key theme throughout this report is the imperative to enhance automation and eliminate manual interventions across all stages of the post-trade lifecycle.
The EU T+1 Industry Committee will host a launch event for market participants to discuss the recommendations on 3 July 2025.
It contains a set of non-legally binding recommendations developed collaboratively by association representatives and workstream leads from various industry segments, and its technical workstreams.
These recommendations are designed to serve as a practical, expert-led framework to assist market participants in identifying and addressing the most critical operational considerations and to support firms鈥� preparations and budget allocations.
Within the 60-page report are 21 securities financing transaction (SFT)-specific recommendations across various trade lifecycle events, including trading, matching and confirmations, and settlement.
More specifically, the report mentions settlement efficiency tool recommendations including auto borrow, auto collateralisation, shaping, and use of transaction type identifiers; intraday liquidity and additional batch requirements; as well as notifications from buy side to lending intermediaries of sales.
Commenting on the release, Giovanni Sabatini, independent chair of the EU T+1 Industry Committee, says: 鈥淸The] publication of the High-Level Road Map and the recommendations included therein marks the kick-off of a complex process to move EU and EEA markets to T+1 on the agreed date of 11 October 2027, in coordination with the UK and Swiss markets.
鈥淲e urge all market participants to review the recommendations, assess the impact on their systems and procedures and start planning how they want to prepare for the transition to T+1鈥�.
According to Sabatini, a key theme throughout this report is the imperative to enhance automation and eliminate manual interventions across all stages of the post-trade lifecycle.
The EU T+1 Industry Committee will host a launch event for market participants to discuss the recommendations on 3 July 2025.
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