ECB Opinion On A Shorter Settlement Cycle Regulation

RegCORE – Client Alert | Capital Markets Union

QuickTake

On 31 March 2025, the European Central Bank (ECB) issued an opinion on the proposed regulation to amend Regulation (EU) No 909/2014 (the Opinion), which aims to reduce the settlement cycle for certain transactions in transferable securities from two business days (T+2) to one business day (T+1).¹ As described in an earlier EU RegCORE Client Alert of this series, this move is intended to enhance the efficiency and alignment of the EU's settlement process with global standards.

The Opinion underscores the importance of fast, efficient, and reliable settlement as a cornerstone for the development of transitioning the Capital Markets Union into the EU's Savings and Investments Union (see standalone Client Alert series on those topics). This Client Alert assesses the outcomes communicated in the Opinion and key takeaways for market participants.