Securities settlement in the EU and central securities depositories (CSDs): shorter settlement cycle in the Union

✦ In short · AI summary of this text, generated 4 Sept 2026

Parliament's amended version of the proposed regulation shortens the securities settlement cycle in the EU to one business day after the trading date, with certain exceptions.¶¶ It introduces penalties for failed settlements and requires central securities depositories to offer cash settlement services.¶¶

Key points

The settlement cycle is reduced to one business day after the trading date for most securities transactions.¶¶
Exceptions to the shorter cycle are allowed for certain types of transactions, such as those involving small and medium-sized enterprises.¶¶
Penalties for failed settlements are harmonised across the EU, with a minimum amount and a daily charge.¶¶
Central securities depositories must offer cash settlement services to support the shorter cycle.¶¶
The regulation sets out requirements for the timing of confirmation of trades and the allocation of securities.¶¶

Who is affected

Central securities depositories in the EU, which must adapt their systems and services.¶¶
Investment firms and market participants that execute securities transactions.¶¶
Small and medium-sized enterprises, whose transactions may be exempt from the shorter cycle.¶¶

Figures and deadlines

One business day after the trading date¶¶

Legal basis: Article 114 of the Treaty on the Functioning of the European Union¶

Written by a language model from the full text only; every figure comes from the text and ¶ links to the paragraph it rests on. Check the text itself before relying on it.