Citi Securities Services Evolution 2025

Securities Services Evolution 2025 | 41 One European market? Underpinning all of these developments in Europe is an increasing focus on the creation of a single European infrastructure as a means of delivering new growth and value to Europe’s individual investors. Influential studies from Enrico Letta, 64 Mario Draghi 65 and Christian Noyer 66 have highlighted the ongoing cost of European market fragmentation, suggesting national FMI silos contribute to inefficiencies, higher costs and reduce liquidity, thus hindering economic growth. But what is the new path to ‘one European market’ and what role will post trade play? That destiny could lie in the European Commission’s Savings & Investments Union (SIU) and its ambition to achieve what the Capital Markets Union (CMU) initiative could not . The EU’s move to T+1 is a critical early step in the European Commission’s plan to liberalize securities listing and issuance across the region, and to realizing the SIU. In the near future, the SIU will likely accelerate steps to forge a European capital marketplace by building on T2S and other regional infrastructures. These efforts, coupled with commercial efforts by FMIs such as Euronext to drive a European CSD model across Europe (see the FMI competition section above) could potentially have a transformational effect on European capital flows. For now though, these early test cases and discussions must be operationalized so that they can be proven to alleviate cross-border frictions in settlements and asset servicing. The purpose of the European “Savings and Investments Union” (SIU) is to break the narrative of an incumbent CSD monopoly Alessio Mottola, Chief Executive Officer, Euronext Securities Milan Key Dates 2025 2026 2027 2028+ T+1 EU / EEA, UK & Switzerland 11thOctober 2027 CSDR June : ESMA Technical Advice on the scope of the Settlement Discipline Regime 67 October : ESMATechnical AdviceonSettlementDiscipline ECB AMI-SeCo Harmonization June: ECMS went live 68 November: SCORE 69 standards apply (excl. CSD participants use of ISO20022) By end of 2028: CSD participants to offer ISO 20022 messaging to their clients (capable of using it) is by the end of 2028. Savings & Investment Union ByendofDecember: EuropeanCommission report ontheSavings & Investment Union 70 which could include recommendations for Settlement Finality Directive (amongst others) Too early to tell but we might expect updates to existing regulations and new regulations