High-level Roadmap for adoption of T+1 in EU Securities Markets

The European T+1 Industry Task Force, established in 2023, consists of 21 trade associations involved in European capital markets. The Task Force aims to bring together industry stakeholders affected by a move to a T+1 settlement cycle for securities traded and settled in the EU.

The Task Force supports a move to T+1  in the EU, recognizing potential benefits in efficiency and risk reduction. However, it acknowledges that transitioning to T+1 is a complex, multi-year process requiring collaboration to avoid new risks and maintain market efficiency and liquidity.

The report focuses on how the industry can transition to T+1 safely and efficiently. It provides recommendations for public authorities and industry participants, categorized into required implementation steps and measures to support settlement efficiency. These include changes to the legal, regulatory, and operational framework, as well as broader changes to mitigate risks such as settlement fails. The report also addresses related processes like corporate action processing, FX trading, and securities financing.

The report highlights the broader complexities in Europe and remaining post-trade barriers, suggesting that tackling these barriers should be a priority alongside the transition to T+1. It also discusses the timing of the transition, suggesting a period of 24 to 36 months once a firm transition date is set. The Task Force supports a coordinated approach across Europe, including the EEA, the UK, and Switzerland.

As a next step, the Task Force calls on public authorities to commit to the move to T+1 and establish a broad industry stakeholder group to determine the necessary changes for the transition. The Task Force hopes its work will serve as a foundation for the next phase of the transition.