Commission proposes to shorten settlement cycle for EU securities from two days to one

The Commission has proposed to shorten the settlement period for EU transactions in transferable securities from two days to one. The proposed legislative amendment would shorten the settlement cycle on securities – such as shares or bonds executed on EU trading venues – from two business days (the so called “T+2”) to one after the trading takes place (“T+1”). Settlement is the process through which the buyer receives the security and the seller receives the cash. The move to T+1 aims to strengthen the efficiency and competitiveness of post-trade financial market services in the EU, which are vital to a well‑functioning savings and investmentsa union (SIU).