London
03 December 2013
Reporter: Georgina Lavers

Euroclear and friends snip settlement cycle


Euroclear UK & Ireland, in cooperation with London Stock Exchange, BATS Chi-X Europe, the Irish Stock Exchange and Turquoise, will shorten the standard securities settlement cycle for the Irish and UK capital markets to T+2 in October next year.

This is in advance of the anticipated deadline of 1 January 2015 in the proposed EU Central Securities Depositories Regulation (CSDR), which aims to harmonise EU securities settlement cycles. This industry-led initiative has the support of the Financial Conduct Authority and the Bank of England.

From 6 October 2014, securities transactions conducted by retail and institutional investors on all trading venues (stock exchanges and multilateral trading facilities) that currently settle on a T+3 basis in Euroclear UK & Ireland will settle on a T+2 basis. This means that the cash and securities components of a trade will be exchanged two days, rather than three days, after the trade. Over-the-counter (OTC) transactions are exempt from the mandatory T+2 settlement cycle.

John Trundle, CEO of Euroclear UK & Ireland, said: “I am delighted that our stakeholders and regulators have accepted our offer to coordinate the implementation of this industry-wide development in the UK and Ireland. Euroclear UK & Ireland is working collaboratively with industry practitioners to address and mitigate risks associated with the move to a shorter settlement cycle in order to ensure a very smooth and coordinated transition.”

Euroclear UK & Ireland already settles trades on a T+0 basis, provided both counterparties to the trade agree to the same settlement period.

Regulated trading venue transactions that settle in Euroclear Belgium, Euroclear France and Euroclear Nederland will also be settled on a T+2 basis from 6 October 2014.

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
META launches new platform for software providers
19 January 2018 | London | Reporter: Jenna Lomax
META Finance is designed to help financial institutions and software providers face the challenges brought by fintech and regulations, such as General Data Protection Regulation
S&P reaffirms OCC’s AA+ rating
19 January 2018 | Chicago | Reporter: Jenna Lomax
S&P has reaffirmed OCC’s financial strength rating of “AA+/stable”
National Settlement Depository implements API
19 January 2018 | Moscow | Reporter: Jenna Lomax
The National Settlement Depository has applied the application programming interface to its online banking services
BNY Mellon sees asset servicing fees growth
18 January 2018 | New York | Reporter: Zsuzsa Szabo
BNY Mellon’s asset servicing fees increased 6 percent year-over-year
AxiomSL hires new EMEA head
18 January 2018 | London | Reporter: Jenna Lomax
Ward will be responsible for developing strategic global relationships
MetLife selects HSBC for custody services
18 January 2018 | Hong Kong | Reporter: Becky Butcher
HSBC Securities Services has been selected as custodian for MetLife across three key markets in Asia
Societe Generale Securities Services and OFI Asset Management have executed the first transactions via the IZNES platform on the Paris market
More news