EUROPEAN UNION: European Council and Parliament Agree on Shorter Settlement Cycle

Thursday June 19 2025

On 18^th June 2025, the European Council and the European Parliament reached a provisional agreement on new rules to make transactions in transferable securities more efficient.

The goal is to shorten the settlement cycle on securities trades, such as transactions in shares or bonds, executed on EU trading venues, from no later than two business days (the so-called ‘T+2’) to no later than one business day after the trade date (‘T+1’).

The new measure takes the form of an amendment to the central securities depositories regulation (CSDR), which entered into force ten years ago. The regulation harmonised the securities settlement cycle in the EU at a maximum of two business days after the trade date.

The agreement to change the settlement cycle in the CSDR will therefore prevent a misalignment between EU and global financial markets and maintain the competitiveness of EU capital markets.

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