Monday July 29 2024
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: France
On 22nd July 2024, the Autorite des Marches Financiers (AMF) and the Banque de France call for a transition to a T+1 settlement cycle for transactions on securities across the EU. This initiative comes at a time when the European Commission has confirmed that the principle of T+1 has been accepted.
The AMF and the Banque de France are also of the view that a two-phased approach is the most pragmatic way forward.
- As a first step, in a T+2 settlement cycle environment, all trades on securities should be confirmed and allocated by the end of the trade date, which implies essential operational and technical upgrades in the industry, such as standardizing data exchanges and automating manual processes.
- As a second step, the settlement cycle could then be reduced to T+1, with a satisfactory level of trade confirmations on the trade date.
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