Alex Chow, Investment Operations Policy Lead at the Investment Association, commented: “With the transition to a T+1 settlement cycle in North America now complete, transitioning in the UK, EU, and Switzerland on a co-ordinated basis is a crucial next step – one that should ideally take place in Autumn 2026 but otherwise no later than Autumn 2027.

“We welcome the statement from ESMA, The European Commission and the ECB outlining their commitment to transition to T+1 and the necessity to “accelerate every aspect of the technical work needed”.

“European alignment on settlement cycles will bring these jurisdictions together in step with the US, enhancing market efficiency, reducing frictions across pan-European and global products and portfolios, and decreasing funding costs.

“Driving greater global alignment on settlement cycles will foster a more robust financial ecosystem, increase investor confidence and improve the competitiveness of UK and European capital markets. We look forward to continuing our work with the UK’s Accelerated Settlement Taskforce on this project.”