T+1 settlement in Europe
From October 11, 2027, a share or bond bought on a European trading venue settles one business day after the trade instead of two. The EU, the UK and Switzerland move on the same day. For treasury and payments teams the change is about cash: the money for a purchase and the currency to fund it must be in place a day earlier. Dated events on the topic are in the calendar below.
The law behind the move
Regulation (EU) 2025/2075 of October 8, 2025 amends the Central Securities Depositories Regulation. According to the text on EUR-Lex, the intended settlement date for transactions in transferable securities executed on trading venues is no later than the first business day after the trade, and the rule applies from October 11, 2027. Excluded are trades negotiated privately and executed on a venue, bilateral trades reported to a venue, the first recording of a new issue, and securities financing transactions such as repo and securities lending when they are documented as one transaction of two linked operations.
The recitals leave room to go further: central securities depositories may still settle on the trade date where that is technically feasible. Euronext, which runs several central securities depositories, describes on its T+1 page an EU T+1 Industry Committee that steers the transition and recommendations that firms follow on an adhere-or-explain basis.
The UK and Switzerland on the same day
The UK and Switzerland chose the same date. HSBC summarizes on its T+1 page for the UK, EU and Switzerland that the UK moves in-scope securities to T+1 on October 11, 2027, following its Accelerated Settlement Taskforce, and that the Swiss Securities Post-Trade Council recommended the same date for Switzerland and Liechtenstein. For a German bank with clients in London and Zurich this means one cut-over weekend for three markets.
Funding settlement on the next business day
With one day less, trades need same-day affirmation, and the window for the currency trade that funds a purchase shrinks. HSBC writes that a shortened cycle limits the window for executing FX trades and meeting funding requirements, and recommends automated FX execution, pre-funding and aligned FX cut-offs. It expects the strongest pressure on clients in Asia because of the time difference.
Repo and securities lending are affected too. A lender that recalls a security to cover a sale has one day less to get it back, so recalls need to run faster. Both tokenized repo and DvP settlement require cash to be available for the securities transfer.
From T+1 to T+0 on a ledger
A tokenized security on a distributed ledger can settle on the trade date or in the same transaction as the trade. 21X settles trades on chain against e-money tokens, and since September 21, 2026 the Eurosystem's Pontes links DLT platforms with T2 for settlement in central bank money. T+0 needs cash and securities in place at the moment of the trade, which removes the netting that T+1 still allows. That trade-off also applies to atomic settlement.
Upcoming events on settlement and capital markets in Germany
Finance Loop and T+1 settlement
Settlement on distributed ledgers, and the forms of money for its cash leg, were the subjects of the two panels at the Frankfurt Forum on Digital Assets & Applications, with speakers from DekaBank, 360X, 21X, Seturion, the Deutsche Bundesbank, Deutsche Bank, Commerzbank, DZ Bank and AllUnity. Finance Loop has a strategic cooperation with 21X on on-chain finance.
Payments & Digital Money
Investment & Digital Assets
When does Europe move to T+1 settlement?
On October 11, 2027. The EU set the date in Regulation (EU) 2025/2075, and the UK and Switzerland move on the same day.
Which transactions are excluded from T+1 in the EU?
Trades negotiated privately and executed on a venue, bilateral trades reported to a venue, the first recording of a new issue, and repo and securities lending documented as one transaction of two linked operations.
Is settlement T+1 or T+2 today?
In the EU, the UK and Switzerland it is T+2 until the change on October 11, 2027.
Can a European trade settle on T+0?
Yes. The EU rule sets a latest date, and central securities depositories may settle earlier where technically feasible. Tokenized securities on DLT venues can settle on the trade date.
T+1 settlement and Finance Loop
Finance Loop covers the move to T+1 in its Payments & Digital Money track, next to DvP settlement, settlement finality and settlement on distributed ledgers. Finance Loop brings people from banks, custodians, exchanges and fintechs together at events in Frankfurt, Munich, Berlin and Hamburg.
Finance Loop is a professional network and has the goal of driving the adoption of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.