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ECB Executive Board member Piero Cipollone said Europe is scheduled to move to T+1 securities settlement on 11 October 2027, cutting the standard settlement period from two business days to one. The ECB is preparing changes to its T2S settlement platform for June 2027 and is also developing infrastructure for settling tokenised transactions in central bank money.
European Central Bank Executive Board member Piero Cipollone said Europe is scheduled to move to next-day securities settlement on 11 October 2027, reducing the standard period between a trade and settlement from two days to one. In a speech in Frankfurt on 29 October, he described the change as part of a wider effort to modernise European markets, with preparations underway for changes to the Eurosystem’s settlement platform and new services for tokenised assets.
Cipollone said the Eurosystem’s TARGET2-Securities platform, or T2S, already processes substantial volumes on T+1 and T+0. The platform enables securities and cash to be exchanged simultaneously in central bank money across Europe. However, he said some T2S processes are being adapted to support the tighter timetable. Changes to its night-time settlement process are planned for June 2027, ahead of the market-wide migration in October.
The ECB is working with the European Securities and Markets Authority, the European Commission and market participants on preparations. Cipollone said the coming months would be important for implementation and testing. The speech did not provide a detailed timetable for individual firms or market segments, nor did it set out operational requirements for each participant.
He also described the Eurosystem’s work on distributed ledger technology, or DLT. According to the speech, since 30 March the Eurosystem has accepted certain marketable assets issued in central securities depositories using DLT as eligible collateral for its credit operations. Since 21 September, the Eurosystem’s Pontes service has enabled wholesale transactions in tokenised assets to settle in central bank money. The ECB is assessing whether and under what criteria DLT-based assets outside currently eligible settlement systems could qualify as collateral.
A Faster Settlement Clock for Europe
Moving from T+2 to T+1 shortens the time between a securities trade and its settlement. Cipollone said a shorter cycle can reduce market and counterparty risk, because trades remain unsettled for less time. The practical effect will depend on how well firms adjust their post-trade operations to the earlier deadline.
The ECB’s argument is that the deadline could also prompt firms to improve standardisation and automation in processes that have relied on longer settlement windows. If the transition works smoothly, faster and more consistent post-trade arrangements could support cross-border investment and the EU’s aim of deeper, more integrated capital markets. Those are expected benefits cited by Cipollone, not measured outcomes established by the speech.
The settlement timetable is also linked to Europe’s international position. Cipollone said the shift will help the region keep pace with other major markets shortening their settlement cycles. Meanwhile, the work on tokenised assets addresses a longer-term question: how to connect new digital market platforms with the established safety and settlement functions of central bank money.
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From T+2 to T+1 and Beyond
Under the current T+2 convention, settlement normally takes place two business days after a securities trade. The planned 11 October 2027 change would make the standard period one business day. Cipollone delivered his remarks at an EU T+1 Industry Committee event called “One year to T+1,” although the scheduled migration date is less than a year away from the speech date.
The ECB presents T+1 as one component of a broader programme covering payments and securities settlement, including work on a digital euro, cross-border payments and DLT. Its existing T2S service already supports shorter-cycle settlement for some transactions, but the planned adjustments are intended to help the wider market operate under the new timetable.
Tokenisation refers here to representing assets in digital form on DLT-based platforms. Cipollone said such technology could make some transfers faster and potentially bring activities such as issuance, trading, settlement and custody into a shared digital environment. The speech described this as a possibility, not a claim that those functions have already been integrated across European markets.
“T2S already supports shorter settlement cycles.”
— Piero Cipollone, ECB Executive Board member
Operational Details Still Pending
The speech confirmed the planned migration date and the June 2027 T2S process changes, but it did not detail all technical specifications, testing milestones or contingency arrangements. It is also not clear from the remarks how every market participant will adapt its systems and workflows, or whether further implementation guidance will be issued.
The ECB has not yet decided whether DLT-based assets outside currently eligible settlement systems can be accepted as collateral. Cipollone said the Eurosystem is assessing whether such assets could qualify and under what criteria, while retaining its requirement that collateral be adequate. The speech also did not give a full description of the planned enhancements to Pontes beyond the initial service.
Testing Before the 2027 Migration
Market participants and European authorities are expected to continue implementation and testing ahead of the planned October 2027 T+1 migration. The next stated Eurosystem milestone is the planned June 2027 change to T2S’s night-time settlement process. Cipollone said the ECB would keep working with market participants and other authorities, but did not announce additional dates for the remaining preparations.
Separately, the Eurosystem will continue assessing collateral criteria for DLT-based assets and developing its tokenised-transaction services. Further decisions and technical details will be needed to establish how those initiatives expand. The speech did not specify when the collateral assessment will conclude or set a timetable for later Pontes enhancements.
Key Questions
When is Europe scheduled to move to T+1 settlement?
The planned migration date is 11 October 2027, according to Cipollone’s 29 October 2026 speech.
What does T+1 settlement mean?
It means a securities trade is scheduled to settle one day after it is made, rather than the current standard of two days. Settlement is when the buyer receives the security and the seller receives payment.
What is the ECB changing before the migration?
The Eurosystem plans changes to T2S’s night-time settlement process in June 2027. Cipollone said T2S already supports some T+1 and T+0 settlement, but the changes are intended to help operations under the new timetable.
How is the Eurosystem working with tokenised assets?
Cipollone said Pontes has enabled wholesale transactions in tokenised assets to settle in central bank money since 21 September. The Eurosystem is also assessing whether some DLT-based assets outside currently eligible settlement systems could qualify as collateral; no final decision was announced.
Source: ecb.europa.eu
