EU Commission hosts conference on shortening the securities settlement cycle in the EU

Brussels, 25 January 2024

Today, the European Commission is hosting a roundtable on accelerating the securities settlement cycles in the European Union. The event is bringing together high-level representatives from a broad range of sectors of the financial industry, leading regulatory authorities, as well as representatives of the European Parliament and European Central Bank. Commissioner for Financial Stability, Financial Services and Capital Markets Union, Mairead McGuinness, and the Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, are the keynote speakers.

The question of the settlement cycle and of its duration is pivotal for markets participants and market infrastructures. The settlement cycle is the period between the moment when a trade is executed on a trading venue and the moment when the settlement takes place. Currently, most major financial markets, including the EU, operate on a T+2 (trade date plus two days) settlement cycle. With the growing digitalisation of finance and international moves to accelerate settlement cycles, there is increasing momentum towards a shorter settlement cycle.

In this context, participants in the roundtable will discuss the opportunities an accelerated settlement cycle could offer, reflect on the international dimension of moving to a shorter settlement cycle and consider how a smooth transition could be organised in the EU.

For more details, you can visit the conference webpage. The event is web streamed online.