The European Securities and Markets Authority has published a final report recommending significant amendments to the Regulatory Technical Standards (RTS) on settlement discipline to improve settlement efficiency across the EU, support the move to a shorter settlement cycle (T+1) by 11 October 2027, and reduce administrative burden for central securities depositories (CSDs) and market participants. The proposed package includes same-day timing (trade date) for trade allocations and settlement instructions, machine-readable formats for allocations and confirmations, mandatory implementation of hold and release, auto-partial settlement and auto-collateralisation functionalities, and updated rules for monitoring and reporting settlement fails. Implementation would be phased in from December 2026 and completed by 11 October 2027, with ESMA urging market infrastructures, intermediaries and their clients to build these changes into their T+1 transition plans. The draft RTS amendments have been submitted to the European Commission, which has three months to decide whether to adopt them.
European Securities and Markets Authority 2025-10-13
European Securities and Markets Authority recommends settlement discipline RTS changes to support EU T+1 transition by 11 October 2027
The European Securities and Markets Authority recommends amending the Regulatory Technical Standards on settlement discipline to enhance efficiency and support a T+1 settlement cycle by October 2027. Key proposals include same-day trade allocations, machine-readable formats, and mandatory hold and release functionalities. The draft amendments have been submitted to the European Commission for adoption consideration.