EUROPEAN UNION: Euroclear CSDs in Belgium, France and the Netherlands commit to T+2 Settlement Period

Thursday July 25 2013

Three of Euroclear’s central securities depositories (CSDs) – Euroclear Belgium, Euroclear France and Euroclear Nederland – are embracing the proposal in CSD Regulation to shorten the settlement cycle from T+3 to T+2 in Europe. In other words, securities transactions will settle two business days after trade date rather than three.

As of October 2014, securities transactions conducted on all trading venues (stock exchanges, multi-lateral trading facilities and organised trading facilities) that settle in Euroclear Belgium, Euroclear France and Euroclear Nederland will be settled on a T+2 basis. OTC transactions are exempt from the T+2 regime. This move pre-empts the proposed 2015 start date stipulated in the pending CSD Regulation for T+2 settlement across the European Union.

An early start date also enables clients of the three CSDs to prepare for T+2 settlement long before the three CSDs migrate their settlement activity to the European Central Bank’s Target2-Securities (T2S) platform in March 2016, which will operate a T+2 settlement regime.

Euroclear Finland, Euroclear Sweden and Euroclear UK & Ireland are in various stages of discussions about a move towards a T+2 cycle. Recommendations and time lines are expected during 2014.

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