GeneralMedium•3 November 2026•
1 min read
ESMA Finalizes Regulatory Framework for EU Transition to T+1 Settlement by 2027
Key Facts
1ESMA announced the completion of the regulatory framework for the transition to a T+1 settlement cycle.
2New allocation and confirmation requirements will take effect on December 7, 2026.
3The full transition to T+1 settlement is scheduled for October 11, 2027.
The European Securities and Markets Authority (ESMA) announced the completion of the regulatory framework for the transition to a T+1 settlement cycle. The Cryptonomist reported that new allocation and confirmation requirements will take effect on December 7, 2026, with the full transition to T+1 settlement scheduled for October 11, 2027.
The transition aims to improve market efficiency, reduce counterparty risk, and enhance the international competitiveness of EU financial markets. ESMA Chair Verena Ross stated that the finalized framework provides participants across the trading and settlement chain with the necessary guidance to begin technical preparations, as EU interest rates remain at 2.65% following the October 29, 2026 decision.