Alex Chow, Investment Management Policy Lead at the Investment Association, commented: “With the transition to a T+1 payments cycle completed in North America, a coordinated transition in the UK, EU and Switzerland is the next key challenge.” This step – ideally to take place in fall 2026 otherwise, it will be implemented by fall 2027 at the latest.
“We welcome the statement from ESMA, the European Commission and the ECB outlining their commitment to transition to T+1 and the need to “accelerate all aspects of the necessary technical work”.
“European alignment on payments cycles will bring these jurisdictions in line with the US, improve market efficiency, reduce friction between pan-European and global products and portfolios, and lower funding costs. will be reduced.
“Strengthening global coordination around payments cycles will foster a stronger financial ecosystem, increase investor confidence and improve the competitiveness of UK and European capital markets. We look forward to continuing to work with the UK Early Payments Taskforce on this matter.”
Read the full position paper here.
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