Central Securities Depository Regulation

Alignment of T+2 Settlement Period

The European Commission has proposed new legislation to govern Central Security Depositories (CSDs). The purpose of this legislation is to align settlement periods across European Economic Area (EEA) countries as a key step to reducing settlement risk, facilitating settlement of cross-border transactions and driving efficiency in the trade capture, allocation and confirmation process.

Key Points

  • The Central Securities Depository Regulation (CSDR) will likely come into force during Q2 / Q3 2014.
  • The legislation requires the alignment of settlement periods across EEA countries (plus Switzerland) to T+2.
  • This change relates to transactions in transferable securities executed on trading venues, i.e. Regulated Markets (RM), Multilateral Trading Facilities (MTFs) and Organised Trading Facilities (OTFs)
  • While implementation would be required by 1st Jan 2015 the timing of the change to T+2 settlement is being announced on a country basis by the respective trading venues

For further information, please see the following:

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