Joint Statement by ESMA, the European and ECB on Shortening the standard securities settlement cycle in the European Union: next steps
Securities Markets
Date:
01 November 2024
On 15th October ESMA, the European Commission’s DG FISMA (Directorate‑General for Financial Stability, Financial Services and Capital Markets Union), and ECB-DG MIP (Directorate-General for Market Infrastructure and Payments) issued a joint statement ahead of the publication of ESMA’s report on the shortening of the settlement cycle, anticipating some of the conclusions of this report and highlighting the need to act fast if the EU wants to avoid prolonging and amplifying the negative impacts of the misalignment with major jurisdictions internationally.
The statement also informs that ESMA, in close coordination with national competent authorities, DG FISMA and the ECB’s DG MIP have agreed to establish a governance structure, incorporating the EU financial industry, as soon as possible to oversee and support the technical preparations of any future move to T+1. Details to follow.