Published on 26 October 2026
Communiqué

One year to go for T+1 settlement: the regulatory framework is complete, now let’s make it happen

The European Union (EU) will switch to T+1 settlement on 11 October 2027. Ahead of this transition, the CSSF invites market participants to finalise their technical preparations, assess readiness across their entire ecosystems and begin testing throughout the trading and settlement chain as soon as possible.

With the publication of the amended RTS on settlement discipline and of the revised ESMA Guidelines on standardised procedures and messaging protocols, the regulatory framework is now complete and ready for this transition.

The RTS on settlement discipline introduce new requirements which are – in the spirit of simplification and burden reduction – largely inspired by the existing market best practices as well as by the recommendations developed in 2025 by the EU T+1 Industry Committee, where Luxembourg industry associations and some entities established in Luxembourg were actively involved.

The new requirements will enter into force with a phased approach, with the first deadline being for investment firms and their clients to comply with the new requirements on allocations and confirmations as from 7 December 2026. The other phased deadlines will follow on 1 July 2027 and 11 October 2027.

The revised ESMA guidelines on standardised procedures and messaging protocols clarify how market participants should meet the new requirements on allocations and confirmations introduced by the amended RTS on Settlement Discipline. In particular, as of 7 December 2026, these revised guidelines foresee the mandatory use of:

  • electronic, standardised communication channels and international messaging standards; and
  • machine-readable communication methods, except in cases of temporary technical disruptions.

The CSSF reminds market participants to take all necessary measures to ensure compliance with the requirements introduced since this will hugely facilitate the preparation for the EU move to T+1 foreseen on 11 October 2027.

After having completed the regulatory framework, ESMA and NCAs will now turn to monitoring  compliance with the new obligations to ensure that the European market will successfully move to T+1. The focus now shifts to market participants to comply with the regulatory requirements, ready their systems and processes, and test their preparedness for this major change.