ESMA said that, one year before the EU moves to a T+1 settlement cycle on 11 October 2027, the regulatory framework is complete. The regulatory technical standards and the guidelines on standardised procedures and messaging protocols have been published. From 7 December 2026, trade allocations and confirmations must be communicated electronically in a standardised, machine-readable format. ESMA urges market participants to start testing now.
What it means: T+1 settlement means a trade in shares or bonds will complete on the next business day instead of two days later. It sounds like a small change, but it sharply cuts the time available for confirmations, funding, securities lending and currency conversion. The US made the move in 2024, and that experience showed manual processes are the biggest obstacle. That is why the first deadline, in December 2026, targets automated allocations and confirmations rather than settlement itself. In Greece, the switch affects the Athens Exchange and its central securities depository, brokers, custodians and fund managers. Foreign institutional investors trading from other time zones need particular attention and timely information. For software firms serving the sector, it creates demand for back-office upgrades and standardised messaging. The switch also overlaps with the Athens Exchange joining the Euronext group, so participants will need to coordinate two major infrastructure changes. Delayed testing is the biggest risk.
Related service: myDATA integrations
Related stories
- UK CMA proposes strategic market status for Microsoft's business software
- Greece's 2027 draft budgetary plan: e-invoicing for small firms and new AADE digital tools
- ESMA clarifies how crypto-asset service providers must safeguard client funds under MiCA
- ESMA makes digital innovation an EU supervisory priority from 2027
- ESMA revises guidelines on delaying disclosure of inside information