EUROPEAN UNION: ESMA Calls on Firms to Finalise Preparations ahead of T+1 Settlement Deadlines

Tuesday July 21 2026

On 20^th July 2026, the European Securities and Markets Authority (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. The statement outlines key milestones, including the first regulatory deadline on 7 December 2026 for allocations and confirmations processes.

As a next step in the process towards T+1, ESMA proposed amendments to Commission Delegated Regulation (EU) 2018/1229 to set new requirements, which are particularly relevant for the transition to T+1. These amendments have now been endorsed by the European Commission and currently are under scrutiny by the European Parliament and the Council.

Market participants will have to be fully compliant by the following deadlines:

First deadline: 7 December 2026, with the requirements to improve the first post-trad step, the exchange of allocations and confirmations, in terms of timing and through the default use of international communication standards.

Final deadline: 11 October 2027, with the requirements to optimise the settlement layer, including sending instructions early enough to securities settlement systems, and the generalisation of certain functionalities in CSDs, such as auto-partial settlement, hold & release, and auto-collateralisation.

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