The European Securities and Markets Authority has launched a consultation on settlement discipline, proposing amendments to the technical standards with the aim of improving settlement efficiency. The package includes shorter timeframes for allocations and confirmations, use of electronic machine-readable allocations and confirmations aligned with international standards, and mandatory implementation of hold and release and partial settlement by all central securities depositories. ESMA is also seeking stakeholder input on additional potential settlement-efficiency measures where it has not yet developed specific policy proposals, taking into account the EU transition to T+1 and the European Commission’s legislative proposal of 12 February 2025. Feedback is open until 14 April 2025, with ESMA expecting to publish a final report and submit draft technical standards to the European Commission by October 2025.
European Securities and Markets Authority 2025-02-13
European Securities and Markets Authority launches consultation to amend settlement discipline standards to improve settlement efficiency and support the EU move to T+1
The European Securities and Markets Authority (ESMA) has initiated a consultation on settlement discipline, proposing amendments to enhance settlement efficiency. Key proposals include shorter timeframes for allocations and confirmations, electronic machine-readable processes, and mandatory hold and release and partial settlement by central securities depositories. ESMA is also seeking input on additional measures in light of the EU transition to T+1 and the European Commission’s recent legislative proposal.