European Securities and Markets Authority (ESMA) Chair Verena Ross urged the EU securities industry to accelerate preparations for a transition to T+1 settlement, in a keynote speech delivered on 3 July 2026 at the EU T+1 Industry Committee event. Ross warned that delays in harmonising post-trade processes could leave European markets at a competitive disadvantage compared to the United States and other jurisdictions that have already shortened their settlement cycles.
Ross outlined ESMA's expectation that the EU should move to T+1 settlement by 2028, aligning with similar timelines being considered by the UK and Switzerland. She stressed that the transition requires coordinated action across market participants, central securities depositories, and regulators to avoid fragmentation. The speech highlighted the need for industry-wide testing, legal and operational adjustments, and harmonisation of corporate actions processing. Ross noted that the European Commission is expected to propose legislative measures to support the shift, building on the work of the EU T+1 Industry Committee, which brings together exchanges, banks, and infrastructure providers. She emphasised that the move would reduce counterparty risk and margin requirements, but cautioned that smaller market participants may face higher compliance costs and urged proportionality in implementation. The speech did not announce new regulatory measures but reinforced ESMA's commitment to facilitating the transition through guidance and coordination with national competent authorities.