The Bank of France and the AMF, the country’s financial market regulator, called on Europe to expedite the transition to a T+1 settlement cycle for stock trades, aligning with Wall Street’s recent reforms. The proposed shift from the current two-day cycle to one business day aims to enhance market efficiency and reduce counterparty risk
“The Autorité des Marchés Financiers (AMF) and the Banque de France call for a well-coordinated and efficient transition to a T+1 settlement cycle for transactions on securities across the EU,” said the joint statement.
Following the U.S. SEC’s recent implementation of T+1 for stocks and corporate bonds, Canada, Mexico, and the UK are also moving towards this faster settlement cycle. The EU may require new legislation to enact this change, with officials emphasizing the need for synchronization with other major European markets like the UK and Switzerland.
