ESMA consults on the potential impact of shortening the standard settlement cycle

Summary:

The European Securities and Markets Authority (ESMA) has launched a Call for Evidence (CfE) to assess the costs and benefits of shortening the settlement cycle in the European Union (EU). The deadline for stakeholders to provide input is 15 December 2023. ESMA seeks feedback from all stakeholders involved in financial markets, including market infrastructures, investment firms, issuers, fund managers, retail and wholesale investors, and their representatives. The input will help ESMA identify whether regulatory action is needed to smoothen the impact for EU market participants of the planned shortening of the settlement cycle to T+1 in other jurisdictions, such as the US. ESMA plans to publish a feedback report in 2024.