Considerations, Benefits and Risks of moving to T+1 in Europe

29 May 2023

T+1 is a trending topic amongst the European trading community and discussing its potential implementation is central to recent conferences. 

In recent years, we have seen several jurisdictions explore and even actively pursue shortening settlement times to T+1. In Europe however most securities transactions executed on a trading venue settle on a T+2 basis, this has been the case since October 2014.

Today, we are starting to see changes globally and markets moving towards implementing T+1. The latest publication from the SEC indicates that T+1 will be launched in U.S. markets in May 2024. The question now is if Europe should follow.

It is worth considering whether it is appropriate and/ or beneficial for Europe too, and if so, how this could be achieved. Given the high degree of integration in these capital markets, we believe that most of the considerations can apply equally to the EEA, UK and Swiss markets.

Learn more about Flow Traders’ standpoint and analysis on the implementation of T+1.