The European Council and the European Parliament reached a provisional agreement to amend the Central Securities Depositories Regulation so that trades in transferable securities executed on EU trading venues settle no later than one business day after the trade date (T+1), replacing the current maximum of two business days (T+2). The change covers securities trades such as shares and bonds. Certain securities financing transactions (SFTs) will be exempt from the settlement-cycle requirement, but only where they are documented as single transactions made up of two linked operations, to limit circumvention risk. The two institutions must now formally adopt the new rules, which will apply from 11 October 2027.
European Council 2025-06-18
European Council and European Parliament reach provisional agreement to move EU securities settlement to T+1
The European Council and the European Parliament have provisionally agreed to amend the Central Securities Depositories Regulation, reducing the settlement cycle for trades in transferable securities on EU trading venues from T+2 to T+1. Certain securities financing transactions will be exempt if documented as single transactions with two linked operations. The new rules are set to apply from 11 October 2027, pending formal adoption.