Regulatory status checked: 10 August 2026.
Regulation (EU) 2025/2075 requires in-scope transactions in transferable securities executed on EU trading venues to move from a maximum T+2 settlement cycle to T+1 from 11 October 2027. Nordic financial institutions participating in EU securities markets should now assess their readiness across the full trading and settlement chain.
The move to T+1 compresses the time available between execution and settlement. Allocations, confirmations, matching, funding, securities availability and exception handling must be completed earlier, with less time for manual intervention.
The effect is not limited to a single system. Firms should examine the dependencies between front-office platforms, reference data, standing settlement instructions, middle-office processes, custodians, central securities depositories and other service providers.
ESMA has identified 2026 as a critical year for firms to finalise preparations. Its July 2026 statement highlights 7 December 2026 as the first regulatory deadline concerning allocation and confirmation processes.
Institutions should confirm how the relevant requirements apply to their activities and monitor the technical standards and implementation material issued during the transition.
T+1 is a regulatory transition, but it also provides a reason to review straight-through processing and operational resilience. Automation can reduce avoidable manual steps, although technology changes alone will not resolve unclear ownership, incomplete data or dependencies between market participants.
Testing should therefore cover both internal processing and the wider ecosystem. Firms should validate not only normal transaction flows but also exceptions, late changes, cross-border activity and recovery procedures.
The financial-services advisory firm CMP is appointing Lene Hjortshøj as a new partner and opening an office in Aarhus to
