Shortened Settlement Cycle

Brussels, Belgium, 13 February 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the European Commission proposed to formally amend the Central Securities Depositories Regulation (CSDR) to shorten the settlement cycle to one business day after trade execution (T+1) on 11 October 2027: “ICI strongly supports the European Commission's commitment to transition from T+2 to T+1 by 11 October 2027. This initiative is crucial to enhancing the EU’s market efficiency, increasing competitiveness, and improving the resiliency of EU...

By Eric J. Pan ( Originally published in the Financial Times on October 18, 2024) In May, the US and Canada moved from settling securities transactions two days after a trade to one. This shift to ‘T+1’ was a resounding success. The EU should follow suit. T+1 means greater efficiency, increased liquidity, and enhanced risk mitigation. As policymakers focus on strengthening capital markets, adopting T+1 has become critical for all major financial centres. The UK has announced its intent to transition by year-end 2027. The Swiss are keen to co-ordinate with the UK and EU. In the EU, a firm...

Brussels, Belgium; October 14, 2024 – Today the European Union (EU) T+1 Industry Task Force published a report supporting a move to an accelerated securities settlement cycle (trade date plus one business day, or T+1). The Task Force, of which ICI is a member, was established in 2023 to bring together a diverse group of industry stakeholders who would be impacted by a potential move to a default T+1 securities settlement cycle. ICI Chief Global Affairs Officer Tracey Wingate released the following statement accompanying the release of the report: “ICI strongly supports shortening settlement...