ESMA urges firms to finalise T+1 settlement preparations

ESMA published a statement outlining key deadlines and action points for the EU transition to a T+1 settlement cycle on 11 October 2027.

ESMA identifies 2026 as critical for T+1 preparation, signalling supervisory expectation of active project delivery. Firms face operational, liquidity, and cross-border settlement risks if readiness slips, particularly for non-EU counterparties and funds.

Directly affects post-trade operations, funding, CSDR discipline, and cross-border settlement risk for EU market participants.

T+1 is a systemic post-trade transition with significant operational risk if firms lag on preparation timelines.

“ESMA published a statement highlighting key deadlines and action points to be ready for the transition to a T+1 settlement cycle in EU financial markets, scheduled for 11 October 2027.”