As the European securities markets prepare for their move to T+1 in October 2027, the European Securities and Markets Authority (ESMA) is consulting on reforms to speed up clearing and settlement communications.
On Tuesday, ESMA launched a consultation on revised guidance that would mandate the use of standardized, electronic communication channels and international messaging standards procedures. It would also eliminate references to communications that aren’t electronic or machine-readable — except during temporary technical glitches.
The proposed revisions are intended to make post-trade communication faster, clearer and more consistent, and ultimately to “enhance settlement efficiency and support a smooth transition to T+1.”
As part of the consultation, ESMA is also seeking input on other potential revisions to the guidance that could simplify the requirements and reduce regulatory burden.
At the same time, the regulator emphasized the importance of preparing for the transition to T+1 settlement.
“Market participants are urged to continue their preparations to meet the new requirements ahead of the deadline,” it said.
The consultation seeks feedback by July 7.
ESMA said it aims to publish final, revised guidance in October, and that the new standards should take effect December 7.