In his speech on 29 October, Cipollone discussed preparations for the move to T+1 settlement on 11 October 2027. T+1 generally means settling a securities transaction on the business day following the trade date. The T2S development plan described in the speech supports market preparations; the speech itself does not impose a new standalone obligation on businesses. ECB speech.
Preparations must cover the entire transaction chain
A fund manager’s or investment firm’s readiness does not depend solely on its own system. Trade data, cash and the necessary confirmations must also reach the broker, depositary, custodian and other partners on time.
We recommend checking three practical questions:
- Deadlines. When must a transaction be confirmed, and when does the partner need final settlement instructions?
- Liquidity. Will cash and the required currency be available on time?
- Responsibility. Who acts when a confirmation is missing or settlement fails, and how are costs allocated?
For example, existing procedures may be unsuitable if the decision to purchase foreign currency is made only after the partner’s new deadline.
The ECB also addressed the interaction of tokenisation and existing infrastructure. Developing a tokenisation solution does not replace readiness to settle through existing partners and systems within a shorter timeframe.