European Central Bank announces shift to T+1 securities settlement

The European Central Bank (ECB) will transition European securities markets to a one-day settlement cycle, known as T+1, effective October 11, 2027. Currently, the standard is a two-day settlement (T+2).

ECB official Piero Cipollone stated that the move aims to improve efficiency, reduce counterparty risk, and make European markets more accessible to investors. The transition will require financial institutions, including banks, brokerage firms, and asset managers, to upgrade systems and increase automation to meet tighter deadlines.

In preparation for the shift, changes to night-time processing for the TARGET2-Securities platform are planned for June 2027. Additionally, the ECB is exploring digital financial infrastructure through its Pontes platform, which began enabling the settlement of selected digital asset transactions in September 2026. The Eurosystem aims to extend these capabilities to allow for round-the-clock settlement by 2028.