One year to go for T+1 Settlement
ESMA Guidelines and Recommendations
Date:
20 October 2026
One year ahead of switch to T+1 settlement, ESMA calls on market participants to finalise technical preparations, assess readiness across their entire ecosystems and begin testing throughout the trading and settlement chain as soon as possible.
Noting the publication of the RTS on settlement discipline and ESMA Guidelines on standardised procedures and messaging protocols, regulatory framework is now ready for the transition to T+1. The Guidelines clarify how market participants should meet the new requirements on allocations and confirmations introduced by the amended RTS on Settlement Discipline, in particular, the mandatory use of:
- electronic, standardised communication channels and international messaging standards; and
- machine-readable communication methods, except in cases of temporary technical disruptions.
Investment firms and their clients must comply with the above requirements from 7 December 2026.