ESMA Proposes T+1 Reforms
European regulators are proposing reforms to enable the transition to a shorter settlement cycle, planned for late 2027.
The European Securities and Markets Authority (ESMA) has set out recommendations for amendments to regulatory settlement standards to prepare the industry for T+1 settlement.
- Mandating critical functionality such as auto-collateralization and auto-partial settlement
- Adopting new deadlines for trade allocations
- Requiring machine-readable formats for trade allocations and confirmations
- Updating requirements for monitoring and reporting failed trades
Author's summary: ESMA proposes reforms for T+1 settlement.