Euroclear CSDs to move to T+2 in 2014

Euroclear CSDs to move to T+2 in 2014

Euroclear central securities depositories in Belgium, France and the Netherlands are to move to a T+2 settlement timeframe in October 2014, earlier than anticipated.

The move pre-empts the proposed 2015 start date stipulated in the pending CSD Regulation for T+2 settlement across the European Union.

Introducing the plans, Valérie Urbain, chief executive officer of Euroclear Belgium, Euroclear France and Euroclear Nederland, states: "A move towards a shorter settlement cycle will increase operational efficiency, as well as drive down counterparty risks. After extensive consultation with clients and stakeholders in our markets, we took the decision to commit to T+2 settlement now, and to make the transition earlier than required."

She says that technically all three CSDs are already capable of T+2 settlement, but that the shorter settlement cycle will require some changes in market practice disciplines such as pre-settlement matching, confirmation and affirmation of client transactions as early as possible, ideally on trade date.

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

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