The European Council announced a provisional agreement with the European Parliament on amending the Central Securities Depositories Regulation (CSDR) to shorten the securities settlement cycle on EU trading venues. The change would move settlement for transactions in transferable securities such as shares and bonds from no later than two business days after trade date (T+2) to no later than one business day (T+1). The agreement includes an exemption for certain securities financing transactions (SFTs), but only where they are documented as single transactions composed of two linked operations, to limit circumvention risks. The Council framed the move as supporting alignment with settlement developments in other major markets and reducing frictions in the EU post-trade landscape. Both institutions must formally adopt the new rules, which are set to apply from 11 October 2027.
European Council 2025-06-18
European Council reaches provisional deal with European Parliament to shorten EU securities settlement cycle to T+1
The European Council and European Parliament reached a provisional agreement to amend the Central Securities Depositories Regulation, reducing the securities settlement cycle on EU trading venues from T+2 to T+1. An exemption applies to certain securities financing transactions documented as single transactions with two linked operations. The change aims to align with global settlement developments and reduce post-trade frictions in the EU.