EU member states’ representatives in Coreper approved the European Council’s negotiating mandate on a European Commission proposal to shorten the settlement cycle for transactions in transferable securities on EU trading venues from two business days after the trade date (T+2) to one business day (T+1). Compared with the Commission proposal, the Council position would exempt securities financing transactions (SFTs) from the T+1 settlement cycle requirement, citing their non-standardised nature and the potential need for non-standardised settlement periods agreed by the parties. To reduce circumvention risk, the exemption would apply only where SFTs are documented as single transactions composed of two linked operations. The Council presidency can now begin trilogue negotiations with the European Parliament to reach a common position. Once agreed, the new rules will apply from 11 October 2027.
European Council 2025-05-07
European Council approves mandate to move EU securities settlement to T+1 by 11 October 2027 with securities financing transaction exemption
The European Council's Coreper approved a negotiating mandate to shorten the settlement cycle for transactions in transferable securities on EU trading venues from T+2 to T+1. The Council's position exempts securities financing transactions from this requirement due to their non-standardised nature. Trialogue negotiations with the European Parliament will follow to finalize the common position.