Montenegro Capital Market Authority coordinates market preparations for T+1 settlement from 1 January 2027

The Montenegro Capital Market Authority has outlined plans for Montenegro’s capital market to move to a T+1 settlement and clearing model from 1 January 2027, following a preparatory meeting with the Central Clearing Depository Company, Montenegro Stock Exchange, authorised credit institutions and investment firms. The change would shorten the settlement cycle from T+2 to no later than the first business day after trading, putting the domestic market ahead of the European Union’s planned move on 11 October 2027 under amendments to the Central Securities Depositories Regulation. The meeting focused on the operational and regulatory implications of the transition. The new model is expected to give buyers faster access to financial instruments, shorten the time for sellers to access cash, and support market liquidity and capital turnover. Implementation will require amendments to relevant secondary legislation and a higher level of operational readiness from market participants because of the shorter timeframe for completing transaction-related activities. Discussion with investment firms and authorised credit institutions covered proposals aimed at identifying and addressing business process challenges in time. Relevant institutions agreed to undertake the necessary administrative, technical and regulatory work in the coming period so that the market is fully prepared for the start of the new model.