In response to a Call for Evidence on shortening settlement cycles in the EU, published by ESMA today, Pete Tomlison, Director of Post Trade at the Association for Financial Markets in Europe (AFME), said:

“This Call for Evidence is an important step in moving forward the debate on T+1 settlement. Moving to T+1 should not only be a question of “when”, but also “why” and “how”. It is important to ensure that any decision to shorten the settlement cycle is underpinned by a robust qualitative and quantitative analysis of the potential benefits, risks and costs, and also takes account of the unique complexities of EU capital markets.

Any potential move to T+1 will require collaboration from a broad range of industry stakeholders, with the ultimate objective of making EU securities markets safer and more efficient. We welcome the opportunity to contribute to this initiative.”

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Notes to Editors:

AFME is leading the European Task Force in preparation for the move to T+1 settlement cycles. Our current areas of focus are:

1. Helping members prepare for the US move to T+1 in 2024
2. Participating actively in the UK Accelerated Settlement Task Force
3. Leading the collaboration with other EU stakeholders to present a common view back to EU authorities
4. Preparing a report on what the industry can do now to address the high level of settlement fails, and prepare the ground for T+1