ESMA consults on T+1 allocations and confirmations guidelines
ESMA launched a consultation on revised guidelines for standardised procedures and messaging protocols ahead of the EU T+1 settlement transition.
ESMA is updating post-trade guidelines to align allocations and confirmations with a T+1 settlement cycle. Market participants face compressed timelines requiring automation, standardised messaging, and tighter operational controls.
T+1 transition heightens settlement, operational, and liquidity risks across capital markets infrastructure and buy-side/sell-side workflows.
Action Required
Review post-trade workflows, messaging standards, and allocation/confirmation timelines against the proposed guidelines and submit feedback.
T+1 migration is a structural market change with material implications for settlement risk, operations, and technology investment.
Assess readiness for T+1 across trade confirmation, allocation, and SSI processes. Identify gaps in STP, messaging standards, and exception management; escalate operational risk where automation is insufficient.
“ESMA has launched a consultation on the updated guidelines on standardised procedures and messaging protocols to support the transition to a T+1 settlement cycle.”