The EU T+1 Industry Committee has just published its High-Level Road Map for the EU T+1 transition.
With the 11 October 2027 transition date fast approaching, the roadmap contains a set of recommendations developed collaboratively by association representatives and workstream leads from various industry segments, and its technical workstreams, with broad industry representation.
These recommendations are designed to serve as a practical, expert-led framework to assist market participants in identifying and addressing the most critical operational considerations and to support firms’ preparations and budget allocations.
ISLA has been an active participant in the development of these recommendations, with ISLA’s Tony Holland acting as a Secretariat for the SFT EU T+1 Technical Workstream. Through engagement with our members and wider SFT Technical Workstream members, we are pleased to see that the 60-page report contains 21 SFT specific recommendations across various trade lifecycle events including Trading, Matching & Confirmations and Settlement, highlighting the integral nature of SFTs to the wider functioning of capital markets.
SFT recommendations cover:
- Settlement efficiency tool recommendations including Auto Borrow, Auto Collateralisation, Shaping, Hold & Release, Use of Transaction Type identifiers
- Automation of Recalls and Returns instruction flows
- Intraday liquidity and additional batch requirements
- Collateral and Loan Release Practices
- Notifications from buy-side to lending intermediaries of sales
- Same day returns for securities lending transactions
- Explore the establishment of moving the T2S DvP cut off from 4pm CET to 5pm CET
- Establish industry taskforce to develop partial settlement market practice
See the announcement covered in the Securities Finance Times here.
Read the full ESMA Press Release here.
For more information or to ensure you stay up to date with the EU T+1 transition, ISLA members are invited to join our Market Practice Steering Group here.
