T+1 in Europe / shortening of the settlement cycle
On the 11 October 2027 the settlement cycle for securities will be shortened in the EU. Today, securities transactions in Europe are required to be settled at the latest two days after the transaction is made (T+2). A shortening of the settlement cycle implies that settlement of the securities will instead have to take place no later than on the day following the day of the transaction (T+1). The Central Securities Depositories Regulation (CSDR) has been amended to reflect this. The different market participants in Sweden and across Europe have started to prepare for the transition. The US, Canada, and some other markets around the world have already shortened their settlement cycle to T+1.
Within the EU, a governance structure to help coordinate the work has been established. The work towards the transition is primarily done by the private sector, but EU public authorities are part of the governance structure.
There is an operational timetable for the transition to T+1 and during 2025 the analytical work was concluded. The implementation work is scheduled to be done in 2026, while 2027 will be used for testing to ensure a successful transition.
A High-Level Roadmap, which contains recommendations to the different market participants, was published mid-2025. It was complemented by reports from different task forces and an implementation Handbook at the beginning of 2026. These documents can be found on the EU T+1 dedicated website: https://eu-t1.eu/
The SSMA is following the work in Europe closely and is working together with its members to prepare the transition in Sweden. That work also includes cooperation with relevant authorities and stakeholders on the Swedish market, for example Euroclear Sweden, the trading venues, the CCPs, Finansinspektionen, Riksbanken and Riksgälden. There is no formal governance structure on the Swedish market, but the SSMA regularly organises information sharing forums where representatives from the infrastructure providers and authorities mentioned above as well as different trade associations are invited.
To get a better understanding of the impact of a shortening of the settlement cycle to T+1 on securities transaction lifecycles, the SSMA has made an illustration of the transaction lifecycle on the Swedish market in today’s T+2 environment. The illustration covers the lifecycles for equities, bonds, ETFs and ETPs. See the illustration
In December 2024, the European and Securities Markets Authority (ESMA) published a report on the shortening of the settlement cycle in the European Union. A section in the report describes how an equity transaction settles in the EU today. A lot of the information in the section is relevant for the Swedish market, but there are also Swedish specificities. Therefore, we have complemented ESMA’s text with some information that we believe is relevant for the Swedish market. Read the complemented ESMA text
Questions and Answers about T+1
We have gathered common questions and answers around the shortening of the settlement cycle for securities to T+1 and the SSMA’s work to prepare the transition to T+1 in Sweden.
Read more in Q&A for T+1 (updated in November 2025)
Useful links about T+1
ESMA Assessment of the shortening of the settlement cycle in the European Union – November 2024
EU Task Force High-level Roadmap for Adoption of T+1 in EU Securities Markets – October 2024
ESMA Shortening the settlement cycle to T+1 in the EU – January 2025
High-level Roadmap to T+1 Securities Settlement in the EU – July 2025