Global Trustee and Fiduciary Services Bite-Sized Issue 3 2025

10 QUICK LINKS CRYPTOASSETS CSDR EMIR FINTECH FSB OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE IRELAND LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2025 T+1 European Commission Proposes to Shorten Settlement Cycle for EU Securities From Two Days to One On 12 February 2025, the European Commission (EC) proposed to shorten the settlement period for EU transactions in transferable securities – such as shares or bonds executed on EU trading venues – from two business days (T+2) to one after the trading takes place (T+1). The EC says the move to T+1 aims to strengthen the efficiency and competitiveness of post-trade financial market services in the EU, which are vital to a well-functioning Savings and Investments Union (SIU). The proposal sets 11 October 2027 as the appropriate date for the transition to T+1 settlement. This timeline is intended to give market participants sufficient time to develop, test and agree processes and standards to ensure an orderly and successful introduction of T+1 on EU capital markets. The EC says the proposal for a move to T+1 is intended to have the following impact: • Promote settlement efficiency and increase the resilience of EU capital markets. It will also help develop deeper and more liquid capital markets, which is a key objective of the SIU. • Avoid market fragmentation and costs linked to misalignment between EU and other global financial markets, contributing to the competitiveness of EU capital markets. The proposal has been submitted to the European Parliament and the Council for their consideration and adoption. The changes will enter into force once the co-legislators have reached an agreement on the proposal and after publication in the EU Official Journal. Link to Questions and Answers here Link to European Commission Proposal Amending CSDR here Link to European Commission Staff Working Document accompanying the proposal here AST Publishes Plans to Move to Faster Settlement of Securities Trades on UK Financial Markets On 6 February 2025, the Accelerated Settlement Taskforce (AST) Technical Group published its final report on its UK Implementation Plan for first day of trading for T+1 settlement – 11th October 2027. The AST says its T+1 implementation plan is the blueprint of changes that Market Participants within the AST believe must be collectively delivered by their peers to harmonise the remaining UK cash securities market with Gilts on a T+1 settlement cycle by the end of 2027. The implementation plan: • Recommends that the first day of UK cash securities trading for settlement on a T+1 cycle should be 11th October 2027, and that this date should be set by the government by amending the relevant part of the UK Central Securities Depositories Regulation. • Recommends the scope of changes needed to UK CSDR to facilitate the transition to T+1 in the UK whilst remaining flexible enough to accommodate additional jurisdictions such as the EU and CH which may choose to transition on the same date as the UK. These scope changes will be amendments to UK CSDR executed by statutory instrument. • Defines a UK T+1 Code of Conduct (UK-TCC) containing the scope, a timetable of recommended actions to enhance market practices and a set of expected behaviours necessary for UK Market Participants to meet their T+1 legislative obligations under UK CSDR. • The UK-TCC answers the two most asked questions in relation to a transition to T+1: – What do I need to do? – When do I need to do it by? The UK-TCC also identifies twelve critical actions in four business areas which must be implemented by all Market Participants to ensure a sustainable transition to T+1 as follows.