By Mark Wootton, Co-Head of the Financial Intermediaries and Corporates Client Line in Asia Pacific, and Alan Cameron, Head of Advisory, Financial Intermediaries and Corporates Client Line
Europe’s move from T+2 to T+1 settlement is a significant change that will impact global investors, notably those in the Asia-Pacific (APAC) region. Europe’s transition is part of a global momentum towards faster settlement cycles, following similar moves by the US, Canada and India.
The proposed timeline and rationale for Europe’s transition which is by end of 2027 aim to reduce counterparty and systemic risk, increase settlement efficiency and enhance market competitiveness.
While the transition may seem distant right now, the scale of the change requires investors to start preparing today
Mark Wootton
Co-Head of the Financial Intermediaries and Corporates Client Line in Asia Pacific.
Why now – key drivers of the Europe transition
Unlike other regions, the shift to T+1 in Europe involves a large number of regulators, legal jurisdictions, central securities depositories (CSDs), multiple currencies and central clearing counterparties (CCPs) – making it more complex than previous transitions.
The proposed transition is primarily driven by the need to reduce counterparty and systemic risk, increase settlement efficiency, and importantly, align with global peers, especially following the adoption of T+1 by countries such as of Canada, India and the US. In fact, the US transition to T+1 last year provided valuable lessons, emphasising the importance of automation and communication.
The Accelerated Settlement Taskforce (AST)[1], established in December 2022 to explore the feasibility of faster securities trade settlements in the UK, recommended that the UK should transition to T+1 by the end of 2027.
The close connection between UK and European markets means that avoiding fragmentation and minimising operational and funding costs for investors trading across these markets is crucial
Alan Cameron
Head of Advisory, Financial Intermediaries and Corporates Client Line.
Last year the European Securities and Markets Authority (ESMA)[2] proposed that the European Union (EU) also moves to T+1 by October 2027. The ESMA report on shortening of the settlement cycle was commissioned by the EU co-legislators through the CSDR Refit. ESMA was given a mandate to assess the appropriateness of shortening the settlement cycle in the EU and to evaluate the potential impacts on market infrastructures and market participants. The report also outlines the costs and benefits of shortening the settlement cycle in the EU, how to move to T+1, and an overview of international developments on settlement cycles and their impact on the Union’s capital markets. In addition, the European Central Bank (ECB)[3] highlighted the importance of settlement mechanisms to ensure the efficiency and safety of financial markets.
Benefits of the move
The transition to T+1 settlement in Europe offers several benefits. For example, shortening the settlement cycle from T+2 to T+1 will streamline the trade settlement process, reducing the time between trade execution and settlement. This will enhance the overall efficiency of the financial markets. By reducing the number of days between trade execution and settlement, the risk of counterparty default and systemic risk is significantly lowered. This is particularly important during periods of high market volatility.
The transition to T+1 will make markets more efficient by reducing the time required for settlement – speeding up the entire trading process. Faster settlement cycles will improve liquidity in the markets, as funds and securities will be available more quickly for subsequent trades.
Synchronising with other regions of the world which have already adopted T+1 settlement timelines, will ensure that European markets remain competitive on a global scale. This alignment is set to attract more global investors and enhance the liquidity of European markets.
The challenges for APAC investors
The proposed move does have its challenges, particularly for APAC.
Funding and operational issues
The time-zone differences between APAC and Europe will create funding gaps and end-of-day challenges for broker/dealers managing their net funding positions. Geographic and time differences also significantly shorten the window for trade allocation and confirmation.
Fragmented markets
European trading infrastructures and markets are heterogenous. This means the lack of consistency on market rules and guidelines in Europe can potentially hinder Asia-based firms’ ability to make meaningful preparations for the T+1 transition.
Competition for resources
Firms in APAC will need to balance their preparations for the European T+1 transition with other ongoing projects and priorities in their local markets.
Technological and operational adjustments
The importance of automation in the trade lifecycle, greater dependency on real-time systems and straight-through processing will increase.
“APAC investors will need to adapt their systems and processes to accommodate the accelerated settlement cycle and ensure compliance with new European guidelines,” says Mr Cameron.
Potential delays
The complexity surrounding the European T+1 transition poses a risk of delayed planning and execution, which could impact the readiness of APAC firms.
Managing FX exposures
There is a potential for increased fails if cash and securities are not pre-positioned. The FX market is still T+2, which means it will have a different settlement time to the listed securities market.
Strategic considerations
“APAC investors need to act now to adapt to the transition and understand that strategic, operational, and technological readiness is key and enhanced collaboration between front, middle, and back offices is necessary,” says Mr Wootton.
“The challenge will be to balance their preparations for the European T+1 transition with other ongoing projects and priorities in their local markets,” he said.
Strategic planning is essential – creating an action plan, identifying weaknesses, resolving issues, assessing technology needs, and ensuring future-proof operations. Operational adjustments are likely to be needed, such as updating systems and processes for the accelerated settlement cycle, reviewing global tech stacks, evaluating vendors and custodians, and ensuring compliance with European guidelines.
Technology updates and investments are also crucial, including investing in real-time reconciliation tools, AI, and machine learning to manage infrastructure pressure and ensure smooth operations.
By taking these steps, APAC investors can ensure they are well-prepared for the transition to T+1 in Europe and can manage the associated risks and challenges effectively.
Guidance through the transition
Maintaining robust relationships with vendors and custodians is crucial to ensure that service providers can accommodate accelerated cycles. Utilising custodians effectively can bridge time zone discrepancies and manage transition complexities.
BNP Paribas’ Securities Services business offers expertise to guide clients through the transition with our extensive experience, global presence, and in-depth understanding of the European market. Services include fails coverage, automated fails coverage programs, and competitive foreign exchange rates. We can ensure clients remain informed throughout the transition and provide necessary educational support.
Europe’s shift to T+1 represents both a challenge and an opportunity for global trading transformation. Offshore investors, particularly those in the Asia-Pacific region, need to consider what steps to take to adapt – strategic, operational, and technological preparedness are essential. BNP Paribas’ Securities Services business is well-equipped to assist clients in navigating this transition and managing risks.
欧洲迈向 T+1 结算——对亚太投资者的影响
欧洲将结算周期从 T+2 缩短至 T+1，这一重大变化将影响全球投资者，尤其是亚太地区的投资者。
作者：Mark Wootton，亚太地区金融中介机构与企业客户联席主管；Alan Cameron，金融中介机构与企业客户顾问主管
欧洲将结算周期从 T+2 缩短至 T+1，这一重大变化将影响全球投资者，尤其是亚太地区的投资者。欧洲的这一举措是继美国、加拿大和印度等市场之后，全球加速结算周期这一趋势的延续。
欧洲计划在 2027 年底完成调整，旨在降低交易对手和系统性风险，提升结算效率，增强市场竞争力。
虽然这一转变目前看似乎还很遥远，但鉴于其规模之大，投资者必须提前做好准备。
Mark Wootton
亚太地区金融中介机构与企业客户联席主管
为何现在行动——驱动欧洲结算周期调整的关键因素
与其他地区不同，欧洲向 T+1 的过渡涉及大量监管机构、法律辖区、中央证券存管机构（CSD）、多种货币以及中央清算对手方（CCP），因此比以往的转变更为复杂。
此次过渡提议主要是为了降低交易对手风险和系统性风险，提升结算效率，尤为重要的是，与全球同行保持一致，特别是在加拿大、印度和美国等国家已采纳T+1结算之后。事实上，美国去年向T+1结算的过渡提供了宝贵的经验，凸显了自动化和沟通的重要性。
加速结算工作组（AST）[1] 于2022年12月成立，旨在探究英国加快证券交易结算的可行性，工作组建议英国应在2027年底前完成向T+1结算的过渡。
英国与欧洲市场之间的紧密联系意味着，避免市场碎片化并最大限度地降低跨市场交易的运营和融资成本，对投资者而言至关重要。
Alan Cameron
金融中介机构与企业客户顾问主管
去年，欧洲证券与市场管理局（ESMA）[2] 提议欧盟也应在2027年10月前实现T+1结算。ESMA关于缩短结算周期的报告是由欧盟共同立法机构通过中央证券存管改革（CSDR Refit）委托制定的。ESMA获授权评估在欧盟缩短结算周期的适宜性，并分析其对市场基础设施和市场参与者的潜在影响。报告同时阐明了缩短结算周期的成本与收益、实现T+1的路径，以及结算周期的国际发展概况及其对欧盟资本市场的影响。此外，欧洲央行（ECB）[3] 也强调了结算机制对确保金融市场效率和安全的重要性。
缩短结算周期的收益
欧洲转向 T+1 结算将带来多方面的优势。将结算周期从 T+2 缩短至 T+1 可以简化交易结算流程，缩短交易执行与结算之间的时间，从而提升金融市场的整体效率。缩短结算天数将显著降低交易对手的违约风险和系统性风险，这在市场剧烈波动时尤为重要。
T+1的实施还将缩短结算所需时间进而提升市场效率，加快整个交易流程。更快的结算周期能够改善市场流动性，使资金和证券能够更快地投入后续交易。
与已采用T+1结算的其他地区保持同步，可确保欧洲市场在全球保持竞争力。此举有望吸引更多国际投资者，进一步提升欧洲市场的流动性。
亚太投资者面临的挑战
虽然此项改革意义重大，但在亚太地区对投资者构成了一些挑战。
资金与运营挑战
亚太地区与欧洲的时差会导致券商/经纪商在管理净资金头寸时出现资金缺口和收盘前的资金压力。时差和地域差异也会大幅压缩交易分配和确认的时间窗口。
市场碎片化
欧洲的交易基础设施和市场形态各不相同，内部的规则和指引缺乏统一。因而，位于亚洲的市场参与者在为欧洲转向T+1 做好准备时，可能会受到这些不一致带来的阻碍，难以进行有效的布局和应对。
资源竞争
亚太的市场参与者在为欧洲T+1过渡做准备的同时，还需兼顾本地市场现有业务的推进和其他优先事项。
技术与运营调整
在交易全过程中，自动化的重要性将进一步提升，同时对实时系统以及直通式处理（STP）的依赖也会相应增强。
“亚太投资者需要调整其系统和流程以适应缩短后的结算周期，并确保遵循新的欧洲监管指引，” Cameron表示。
潜在的延迟
欧洲 T+1 转型的复杂性可能导致规划和执行上的延误，进而影响亚太地区市场参与者的准备工作。
管理外汇敞口
外汇市场仍采用 T+2 的结算周期，意味着其结算方式将不同于证券市场。如果现金和证券未事先配置，交易失败的可能性会增加。
战略层面的考量
Wootton指出：“亚太投资者应该立刻采取行动以适应这一转变，并认识到战略、运营和技术准备至关重要，而且前、中、后台之间的协同合作也至关重要。”
Wootton补充道：“对于亚太投资者来说，其面临的最大挑战在于，既要为欧洲的 T+1 转型做好准备又要兼顾本地区正在进行的项目和业务优先事项。”
为此，战略规划尤为重要，具体包括制定详细的行动计划，识别薄弱环节，及时解决现有问题，评估技术需求，确保业务具备面向未来的运营能力。在运营层面，可能也需要进行相应调整，比如更新系统和业务流程以适应缩短的结算周期，重新审视全球技术架构，评估供应商和托管人的服务能力，及确保符合欧洲相关准则。
技术方面的更新和投入同样不可或缺，包括实时对账工具、人工智能以及机器学习，以应对基础设施压力并保障业务顺畅运营。
通过采取以上措施，亚太投资者能够为欧洲 T+1 结算的全面落地做好充分准备，并有效管理随之而来的风险与挑战。
过渡期指导
与供应商和托管人保持稳固的合作关系至关重要，这样才能确保服务提供商能够适应更快的结算周期。有效利用托管人的优势，可弥合时区差异并有效应对过渡期间的种种复杂性。
法国巴黎银行证券服务业务凭借丰富的经验、遍布全球的网络以及对欧洲市场的深刻理解，能够为客户在整个过渡期提供全方位的指导。我们能提供的服务包括交易失败保障，自动化的交易失败保障方案，以及具竞争力的外汇报价。我们能够在过渡期间确保客户及时了解最新情况，并提供必要的培训支持。
欧洲迈向 T+1结算对全球交易转型而言既是挑战，也是机遇。离岸投资者，尤其是亚太地区的投资者，需要考虑应如何适应这一变化——战略、运营和技术方面的准备工作至关重要。法国巴黎银行证券服务业务具备全面的资源与专业能力和经验，能够帮助客户顺利完成这一过渡，并有效管控相关风险。
[1] Accelerated Settlement Taskforce – Terms of Reference from February 2025 – GOV.UK