The European Securities and Markets Authority (ESMA) has published a statement on 20 July 2026 outlining key deadlines and action points for the transition to T+1 settlement in the European Union. The document, reference ESMA74-2119945926-3773, addresses the post-trading sector and provides guidance to market participants on the steps needed to prepare for the shortened settlement cycle. ESMA's statement comes as the EU moves to align with global trends toward faster settlement, following similar moves in other jurisdictions. The statement does not introduce new regulations but consolidates existing timelines and operational requirements, urging market participants to complete necessary system upgrades and testing phases by the specified deadlines. The transition to T+1 is expected to reduce counterparty risk and improve capital efficiency for EU financial markets, though it will require significant coordination among central securities depositories, clearing houses, and investment firms. ESMA's action points include finalizing connectivity testing, updating internal processes, and ensuring compliance with the revised settlement discipline regime.
The statement impacts EU-based investment firms, trading venues, and post-trade infrastructure providers, who must adapt their operations to the faster cycle. No prior coverage of this specific ESMA statement exists in recent records.