With planning for the introduction of T+1 settlement across the EU, UK and Switzerland now well underway the road ahead is becoming increasingly clear. To mark the latest steps on this important journey, we recently hosted a webinar, EU T+1: End of the beginning?
Watch the webinar replay
On the panel, Giovanni Sabatini, Chair of the European T+1 Industry Committee, Emma Johnson from JP Morgan, Barnaby Nelson from The ValueExchange, and BBH's John Siena discussed:
‒ Industry readiness and lessons learned from other markets
‒ How the trade/settlement lifecycle is likely to be affected
‒ Geographic and funding/liquidity considerations
‒ Operational challenges... and opportunities
‒ Alignment with non-EU markets
The panel noted the challenges posed by moving European markets to T+1 are more complex than those faced by the US, UK and Switzerland. However, much groundwork has been done to prepare for the shift. Panelists agreed that clear and frequent communication between stakeholders will be key in helping market participants understand likely T+1 transition impacts.
In addition, the panel highlighted:
- How useful lessons can be learned from the US transition to T+1 last year, particularly on testing systems for ‘bad day’ market scenarios.
- The need to find the right balance between market practices and supervisory actions.
- Why European market participants should engage with stakeholders from other geographic regions to avoid time zone trading and settlement timing problems.
- Why concerns remain over the future treatment of exchange traded funds (ETFs) and Eurobonds in a European T+1 environment.
- Why the October 11, 2027 T+1 implementation deadline must not be missed.
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