Piero Cipollone: Next-day securities settlement, tokenisation and the transformation of Europe’s financial infrastructure

Europe is set to undergo a significant transformation in its financial infrastructure. Starting 11 October 2027, the time it takes for a security to be traded and received will be reduced from two days to one. This is known as T+1 settlement, and it is part of a larger strategy to improve efficiency, resilience and safety in Europe's financial markets.

The European Central Bank, along with other key institutions, supports this change as it helps to make European financial markets more competitive. The transition to T+1 also necessitates greater standardisation, automation and innovation in post-trade processes, making it easier for capital to flow across borders and supporting the EU's goal of creating deeper and more integrated capital markets.