in the EU, UK, Switzerland, Liechtenstein & Norway
Transition to T+1 settlement
While the industry is familiar with the U.S. transition, Europe's transition will be far more complex: multiple CSDs, diverse settlement practices, various currencies, and the added pressure of CSDR's settlement discipline regime.
While the industry is familiar with the U.S. transition, Europe’s transition will be far more complex: multiple CSDs, diverse settlement practices, various currencies, and the added pressure of CSDR’s settlement discipline regime. These factors increase operational risk for all participants, from Investment Managers and Management Companies to Custodians and Fund Administrators.
Additionally, are other impacted areas can be expected depending on your organisational setup and operating context.
The EU T+1 industry committee high-level roadmap, poised to become the market standard, already outlines key recommendations, some of which carry deadlines as early as 2026 with several actions due by the end of 2026, ahead of the final October 2027 deadline
Impacted Dimensions
Trading
Matching and confirmations
Clearing
Settlement
Asset Management
FX
Corporate Events
Securities Financing Transaction
Contractual and regulatory
"The roadmap outlines the key actions, milestones, and dependencies needed to support a well-coordinated transition to a T+1 settlement cycle by October 2027. This transition is not simply a technical adjustment. It will require significant operational, technological, legal, and behavioural changes across the entire settlement chain—from trading venues and CSDs to asset managers, custodians, and intermediaries."
EU transition presents unique challenges compared to North American T+1 transition
The U.S. benefited from a centralised post-trade model, with a single CSD and a single currency ($).
Europe must coordinate a much more fragmented landscape such as:
- A significant number of participating countries - 27 European Union member states, the UK, Switzerland, Lichtenstein and Norway.
- Anticipated around 39 CSDs and 19 CCPs that need to be operable in the new accelerated settlement process and timetable.
- A multicurrency settlement ecosystem compressing FX and liquidity processes into a shorter window.
- A CSDR penalties regime allocating cash penalties daily in the case of settlement fails.
Key questions you can ask yourself
- Have you evaluated how enhanced operational speed reconciles with cashflow and liquidity realities?
- Have you assessed whether your delegation framework, SLAs and oversight model are fit for a T+1 world, or are you counting on counterparties to upgrade before you do?
- Are you ready to meet the T+1 industry roadmap expectations, especially those with deadlines by the end of 2026?
- Is your technology stack capable to handle T+1 or are you expecting structural technology changes?
- How exposed are you to the CSSF’s warning that this shift is far more than a technical adjustment, requiring major operational, technological, legal and behavioural change?
- How will you handle major time zone differences when timelines are compressed?
The move to T+1 compresses timelines and transforms workflows, technology,
and data across the settlement cycle
Targeted analysis to identify the implications for your clients and workforce, assess impacts on cash and liquidity, and evaluate the readiness of your processes, controls, technology, data and third-party vendors.
Our Experts and Business Analysts will partner with you to support scoping, planning, defining business requirements, designing and executing tests, and guiding implementation through to a successful go-live.
End-to-end T+1 delegate due diligence, including tailored questionnaires, operational readiness assessments, gap identification, and coordination of targeted follow-up sessions to ensure compliant and timely adaptation to the accelerated EU settlement cycle.
Our experienced project managers will help you mobilise your programme, establish robust governance, and rigorously manage the execution of your change initiatives.
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