The Cyprus Securities and Exchange Commission has issued a circular on the transition to a T+1 securities settlement cycle, setting out the regulatory requirements and supervisory expectations for affected firms. The change means in-scope securities transactions are expected to settle one business day after execution, and CySEC is asking regulated entities impacted by the move to complete two readiness surveys by 9 June to support implementation planning and supervisory monitoring. The circular covers the securities trading and settlement chain, including central securities depositories, central counterparties, custodians, brokers, other intermediaries, asset managers and investors. It applies to transactions in transferable securities executed on trading venues and falling within Article 5 of the EU Central Securities Depositories Regulation as amended by Regulation (EU) 2025/2075. CySEC highlights shorter timelines for allocation, confirmation, matching and settlement, greater reliance on automation as manual processing becomes less viable, earlier funding, collateral and margin needs, and added cross-border complexity from time zones, foreign exchange execution timelines and pre-funding requirements. The two surveys are being run in parallel by national competent authorities and the EU T+1 Industry Committee. They will gather information on settlement-cycle performance and fail rates, process and system readiness, third-party and vendor dependencies, testing plans and milestones, and key risks, constraints and support needs.
Cyprus Securities and Exchange Commission2026-06-03
Cyprus Securities and Exchange Commission issues T+1 settlement circular and seeks readiness surveys by 9 June
The Cyprus Securities and Exchange Commission has issued a circular on the transition to a T+1 securities settlement cycle, setting out regulatory requirements and supervisory expectations for firms. The circular applies to transactions in transferable securities executed on trading venues under Article 5 of the EU Central Securities Depositories Regulation as amended by Regulation (EU) 2025/2075, and highlights shorter timelines, increased automation needs, earlier funding and collateral requirements, and added cross-border complexity. CySEC will use two readiness surveys, run with national competent authorities and the EU T+1 Industry Committee, to assess settlement performance, system readiness, third-party dependencies, testing plans and key risks.