Three of Euroclear’s central securities depositories (CSDs)—Euroclear Belgium, Euroclear France and Euroclear Nederland—will shorten the settlement cycle from T+3 to T+2 in Europe starting in October 2014. This move preempts the proposed 2015 start date stipulated in the pending CSD Regulation for T+2 settlement across the EU.
Securities transactions conducted on stock exchanges, multi-lateral trading facilities and organized trading facilities that settle in Euroclear Belgium, Euroclear France and Euroclear Nederland will be settled on a T+2 basis. OTC transactions are exempt from the T+2 regime.
An early start date also enables clients of the three CSDs to prepare for T+2 settlement long before the three CSDs migrate their settlement activity to the European Central Bank’s Target2-Securities (T2S) platform in March 2016, which will operate a T+2 settlement regime.
Valérie Urbain, CEO of Euroclear Belgium, Euroclear France and Euroclear Nederland, stated: “Technically and functionally, Euroclear CSDs are ready today to settle on a T+2 basis. The shorter settlement cycle will require some changes in market practice disciplines such as pre-settlement matching, confirmation and affirmation of client transactions as early as possible, ideally on trade date.”
Meanwhile, Euroclear Finland, Euroclear Sweden and Euroclear U.K. & Ireland are in various stages of discussions about a move towards a T+2 cycle.
Three Euroclear CSDs To Commit Early To T+2
Three of Euroclear’s central securities depositories (CSDs)—Euroclear Belgium, Euroclear France and Euroclear Nederland—will shorten the settlement cycle from T+3 to T+2 in Europe starting in October 2014. This move preempts the proposed 2015 start date stipulated in the pending CSD Regulation.
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