Following the move to a T+1 settlement regime across the Americas the focus is now on reharmonising settlement cycles across international markets so that liquidity costs incurred in switching assets between T+2 and T+1 markets are eliminated and the risk of trade fails minimised. Both the EU and UK are preparing for their own transition to T+1 in 2027, looking to the lessons learned from the American experience where transition to T+1 in the United States, Canada, Mexico, Argentina and Costa Rica in May 2024 was achieved smoothly without any significant issues or market disruptions.
Towards a unified settlement cycle
There is widespread support for the transition to T+1, from regulators, industry associations and their members, who have all collaborated in planning the frameworks for the migration in their respective markets. Euroclear has played a crucial role in these discussions and will continue to do so throughout the process. Although 11 October 2027 sounds a long way into the future, the scale of task means that we need to start preparing for the transition now.
In this report, we outline the start of the transition to T+1 in Europe as well as Euroclear’s role and how we are committed to be a fundamental part of the change.
