European Union – October 27, 2026 -- The EU will switch to T+1 settlement on 11 October 2027, and the European Securities and Markets Authority (ESMA) says the regulatory framework is now complete. ESMA is calling on market participants to finalise technical preparations, assess readiness across their entire ecosystems and start testing across the trading and settlement chain as soon as possible.
First compliance deadline for allocations and confirmations falls on 7 December 2026
Investment firms and their clients must comply with the new allocation and confirmation requirements from 7 December 2026. From that date, the amended RTS on Settlement Discipline makes two things mandatory:
- electronic, standardised communication channels and international messaging standards;
- machine-readable communication methods, except during temporary technical disruptions.
Revised ESMA guidelines clarify messaging procedures to complete the rulebook
ESMA published revised guidelines on standardised procedures and messaging protocols. They set out how market participants should meet the allocation and confirmation requirements. The regulator describes them as the final piece of regulatory work for the transition.
ESMA chair Verena Ross puts the readiness burden on industry
Ross called the move to T+1 "one of the most impactful recent market structure initiatives". She said it will fundamentally improve the efficiency and international competitiveness of EU markets.
She described a successful transition as a shared effort of industry and public authorities. The focus now shifts to market participants to comply with the requirements, ready their systems and processes, and test their preparedness. ESMA asks them to take into account the recommendations of the EU T+1 Industry Committee.