EBF Position Paper on the Next Steps for Europe's T+1 Transition

EBF POSITION PAPER
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Next Steps for Europe's T+1 Transition

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BRUSSELS, 15th November 2024 - The EBF calls for a EU - T+1 implementation roadmap to be completed in the coming months.

The European Banking Federation (EBF) has long supported efforts to enhance the efficiency of the EU post-trade ecosystem to promote the attractiveness and competitiveness of EU capital markets. Against this background, the EBF is fully supportive of a successful move to T+1 in the EU and recognises the potential benefits in terms of efficiency gains and risk reduction. Considering the unique EU market structure and operational model, it is clear that a move to T+1 in the EU would be a complex, multi-year undertaking. Such transition, therefore, will demand the highest level of commitment and collaboration from all industry stakeholders and jurisdictional government bodies to ensure that any undue risks are mitigated to the greatest extent possible to avoid undermining the existing efficiency, liquidity and functioning of EU securities markets.

The EBF considers that a successful move to T+1 in the EU should be seen as a collective interest of all EU member states and of all financial market stakeholders, with strong benefits for the European economy as a whole, and therefore requiring an equally strong and dedicated collective effort and coordination.

The transition to T+1 will have the potential to trigger a "virtuous circle" of coordinated market reforms (some of which long overdue) in the area of post-trade services, which will form the basis for more efficiency, more automation, more harmonization and integration of all activities, including settlements, corporate actions, tax reclaims and issuer-investor relationships. A successful transition to T+1 offers a unique opportunity, not to be missed, for significant progress across the industry and across all relevant stakeholders towards more efficient and integrated financial markets in Europe.

Against this background, a timely and comprehensive implementation roadmap leveraging the work completed by the EU T+1 Task Force, (including detailed analysis of all infrastructural, legal and operational changes to be completed ahead of the final migration date, as well as any associated project risks) will be critical to making the transition a success rather than a setback for the EU. This roadmap should clearly define ownership and sequencing of implementation milestones.

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For more information please contact:

Jacopo Borgognone
Senior Advisor, Financial Markets [email protected]

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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure, and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.

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