Read the CySEC Circular C702
Memo #28-2025
CySEC Circular No: C702
Date: 10/04/2025
Subject: Shortening of the standard securities settlement cycle in the European Union
Purpose: To inform Regulated Entities on recent developments in relation to the shortening of the standard securities settlement cycle in the EU.
In Summary:
CySEC has issued the Circular C702 on 09/04/2025 to provide detailed information to Cyprus Investment Firms (‘CIFs’), Alternative Investment Fund Managers, Trading Venues and Central Securities Depositories on recent developments in relation to the shortening of the standard securities settlement cycle in the European Union (“EU”).
The European Commission (“the Commission”) having considered the recommendations in the European Securities and Markets Authority’s (“ESMA”) Final Report on the assessment of shortening the settlement cycle in the EU has recently proposed to shorten the settlement period for EU transactions in transferable securities from two days to one.
The proposed legislative amendment would shorten the settlement1 cycle on securities - such as shares or bonds executed on EU trading venues - from two business days (the so called “T+2”) to one after the trading takes place (“T+1”). The move to T+1 aims to strengthen the efficiency and competitiveness of post-trade financial market services in the EU.
The Commission is proposing a targeted amendment to Regulation (EU) No 909/2014 (“CSDR”) as regards a shorter settlement cycle in the EU.
The proposal sets 11 October 2027 as the appropriate date for the transition to T+1 settlement.
The Circular C702 provides information on the impact of moving to T+1, the challenges and next steps on this move and the T+1 Governance Structure.
More information on T+1 can be on the following links:
• Commission:
• ESMA:
The ESMA Final Report can be found on the following link: https://www.esma.europa.eu/sites/default/files/2024-11/ESMA74-2119945925-1969_Report_on_shortening_settlement_cycle.pdf
Read the CySEC Circular C702
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