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By Elise GRAZINI and Mohamed RADJABOU, Senior Managers at BearingPoint
When the United States completed its move from T+2 to T+1 in May 2024, it demonstrated that faster settlement was not only achievable but also effective in reducing counterparty risk and improving market efficiency. Europe is now preparing to follow, with a proposed implementation date of 11 October 2027 through an amendment to the Central Securities Depositories Regulation. While the destination may be the same, Europe’s path to T+1 will be markedly more complex.
A fragmented European market compared to the U.S. model
The U.S. transition to T+1 was facilitated by a relatively unified market structure. A single currency, a limited number...
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