Reminder of the importance of participating in T+1 initiatives (surveys and public consultations)

The transition to a T+1 settlement cycle under CSDR, effective from 11 October 2027, requires timely and coordinated action across the trading and post-trading chain. Market participants are expected to actively advance their preparedness.

With the deadline of 9 June 2026 approaching, market participants are strongly urged to complete the CSSF survey without delay. This exercise is critical to assess the state of readiness across Member States and to identify remaining gaps requiring supervisory attention. Responses are accessible only to CSSF and ESMA:

• the national competent authorities’ survey

In parallel, participation in the EU T+1 Industry Committee (EUIC) second readiness survey is also strongly encouraged to support a comprehensive, EU-wide assessment of industry preparedness:

• the EU T+1 Industry Committee (EUIC) 2^nd readiness survey

Against this backdrop, market participants should also take into account the forthcoming entry into force of amendments to Regulatory Technical Standards (RTS) on Settlement Discipline, expected to be endorsed by the European Commission, which will further specify operational requirements supporting the transition to T+1. According to the final draft submitted by ESMA to the Commission, these measures will entry into force with a phased approach as follows:

Finally, the CSSF draws the attention of market participants to the fact that ESMA has launched a consultation on the updated guidelines on standardised procedures and messaging protocols. This review is part of ESMA’s work to support market participants in preparing for the transition to a T+1 settlement cycle.

The proposed updates are designed to make post trade communication faster, clearer and more consistent across the EU. They reflect the amendments proposed in ESMA’s Final Report on Amendments to the RTS on Settlement Discipline and support firms in meeting tighter timelines further to the transition to T+1.

Key proposed changes include:

• reflecting the mandatory use of electronic, standardised communication channels and international messaging standards;
• removing references to non-electronic and non-machine-readable communication methods, such as oral allocations and confirmations, except in cases of temporary technical disruptions.

The revised guidelines should apply from 7 December 2026, in alignment with the expected date of application of the proposed new requirements for allocations and confirmations under the RTS on Settlement Discipline.

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The CSSF strongly urges a broad and timely participation by Luxembourg market players to these initiatives aimed at collecting feedback from the industry which is essential both to obtain a clear view as to the state of readiness of the Luxembourg market and shape future regulatory steps to be taken. At this stage, industry engagement should move from planning to execution to ensure the necessary level of preparedness.