The European Securities and Markets Authority (ESMA) has recommended that the European Union transition to a T+1 settlement regime for securities transactions by October 11, 2027.

This change aims to reduce the settlement period from two days to one, aligning the EU with the practices already adopted by the US and Canada, which made the switch in late May.

The UK is also set to implement the T+1 regime in the final quarter of 2027, further harmonizing settlement practices across major financial markets.

This move is expected to enhance efficiency in trading and settlement processes within the EU, reflecting a growing trend towards faster transaction settlements in global finance.