European Securities and Markets Authority launches consultation on T+1 post trade messaging guidelines with mandatory electronic standards

The European Securities and Markets Authority has launched a consultation on updated guidelines for standardised procedures and messaging protocols to help firms prepare for the European Union's move to a T+1 settlement cycle. The proposed revisions are intended to make post-trade communications faster and more consistent across the bloc, particularly for allocations and confirmations, and align the guidance with ESMA's proposed amendments to the Regulatory Technical Standards on Settlement Discipline. The draft changes would require the use of electronic, standardised communication channels and international messaging standards, and would remove references to non-electronic and non-machine-readable methods such as oral allocations and confirmations, except during temporary technical disruptions. ESMA expects the revised guidelines to apply from 7 December 2026, in line with the expected application date of the new allocations and confirmations requirements under the settlement discipline RTS. The consultation has been launched before the European Commission formally endorses the RTS to give stakeholders more time to respond and prepare ahead of the T+1 transition on 11 October 2027. Feedback is due by 7 July. ESMA expects to publish a final report including the updated guidelines by October 2026.