ESMA calls on firms to finalise preparations ahead of T+1 settlement deadlines
ESMA has published a statement urging EU market participants to accelerate their readiness for the transition to a T+1 settlement cycle, scheduled for 11 October 2027. The authority identifies 2026 as a critical preparation year, with the first regulatory deadline falling on 7 December 2026 for allocations and confirmations processes. Firms must review and test their own readiness as well as that of their entire trading and settlement chain ecosystem.
What changed
- The T+1 settlement cycle transition date for EU financial markets is confirmed for 11 October 2027.
- The first regulatory deadline is set for 7 December 2026, covering allocations and confirmations processes.
- ESMA formally identifies 2026 as a critical year and calls on market participants to finalise all preparations now.
- Firms are required to test readiness not only internally but across their entire trading and settlement chain, including third-party ecosystem participants.
Who is affected
EU market participants across the full trading and settlement chain — including investment firms, CSDs, custodians, and other post-trade service providers operating under EU jurisdiction.
- Effective
- 2027-10-11
- Deadline
- 2026-12-07
- Action
- Action required
- Language
- EN