Colombus Consulting publishes a study on the drivers of success for the transition to T+1 settlement.
In October 2027, the settlement of securities transactions will change from T+2 to T+1 across all European markets. This structural change brings Europe closer to international standards and implies a profound transformation for financial players.
To support this transition, Colombus Consulting offers an in-depth analysis of these impacts, accompanied by concrete recommendations.
T+1: A structural change that needs to be anticipated today
Reducing the settlement cycle by one day is not a simple technical adjustment. It disrupts the entire front-to-back chain, compressing execution, control and settlement times. The transition to T+1 requires a review of all processes and interactions between the various players in the chain.
Our study identifies three major challenges to be addressed:
- Operational models and systems must evolve to absorb the reduction in timeframes.
- Front-to-back synchronisation is becoming critical in order to avoid errors and settlement rejections.
- Cross-functional governance is essential to effectively coordinate teams and partners.
These changes affect financial institutions, their market infrastructures and their relationships with counterparties.
Three key levers for a successful transition
To overcome these challenges, our study highlights three levers for transformation that need to be mobilised:
- Automation of flows and controls to increase speed and reliability.
- Enhanced coordination between business lines and partners to ensure alignment of operations.
- Global, real-time management to guarantee operational continuity and the ability to respond to incidents.
At Colombus Consulting, we support our clients in this transformation by focusing on co-construction. Each institution has its own specific characteristics and level of maturity: we work with them to define a tailored path to ensure the success of their transition to T+1.
Contact us to build your roadmap for this transition.