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ESMA urges firms to finalise T+1 preparations
20 July 2026 Europe
Image: Dodi/stock.adobe.com
The European Securities and Markets Authority (ESMA) has published a statement outlining the key deadlines and steps required for transition to the T+1 settlement cycle across EU financial markets.
The statement also details critical milestones, emphasising the first regulatory deadline on 7 December 2026, regarding allocation and confirmation processes.
By this deadline, ESMA requires market participants to improve the first post-trade step and accelerate the exchange of allocations and confirmations, through the default use of international communication standards.
This compliance deadline forces a transition away from manual processes, ensuring automated, faster, and standardised workflows ahead of final T+1 settlement migration.
With the move scheduled for 11 October 2027, ESMA underlines that 2026 is a critical year for market participants to finalise their preparations.
In the statement, the regulator calls on market participants to prepare, evaluate their own readiness, and verify the preparedness of their ecosystem throughout the entire trading and settlement chain.
As a next step in the process towards T+1, ESMA has proposed amendments to Commission Delegated Regulation (EU) 2018/1229 to set new requirements, which are particularly relevant for the transition to T+1.
These amendments have now been endorsed by the European Commission, and are currently under scrutiny by the European Parliament and the Council.
ESMA and National Competent Authorities are in the last stages of their review of the Level 3 guidance on allocations and confirmations.
According to the EU T+1 Industry Committee's latest two surveys, there has been a rise in market commitment, as well as uneven implementation levels across different EU financial markets, sectors, and firms.
The statement also details critical milestones, emphasising the first regulatory deadline on 7 December 2026, regarding allocation and confirmation processes.
By this deadline, ESMA requires market participants to improve the first post-trade step and accelerate the exchange of allocations and confirmations, through the default use of international communication standards.
This compliance deadline forces a transition away from manual processes, ensuring automated, faster, and standardised workflows ahead of final T+1 settlement migration.
With the move scheduled for 11 October 2027, ESMA underlines that 2026 is a critical year for market participants to finalise their preparations.
In the statement, the regulator calls on market participants to prepare, evaluate their own readiness, and verify the preparedness of their ecosystem throughout the entire trading and settlement chain.
As a next step in the process towards T+1, ESMA has proposed amendments to Commission Delegated Regulation (EU) 2018/1229 to set new requirements, which are particularly relevant for the transition to T+1.
These amendments have now been endorsed by the European Commission, and are currently under scrutiny by the European Parliament and the Council.
ESMA and National Competent Authorities are in the last stages of their review of the Level 3 guidance on allocations and confirmations.
According to the EU T+1 Industry Committee's latest two surveys, there has been a rise in market commitment, as well as uneven implementation levels across different EU financial markets, sectors, and firms.
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