The European Securities and Markets Authority has published final revised guidelines on allocation and confirmation procedures, completing the regulatory framework for the European Union’s move to T+1 settlement on 11 October 2027. The guidelines apply from 7 December 2026, the first compliance milestone under the phased transition, and clarify the arrangements required between investment firms and their professional clients. Allocations and confirmations must use electronic, standardized communication methods, international open messaging and reference data standards, and machine-readable content. Emails and graphical user interfaces are permitted if the information can be automatically identified and extracted, while internal or domestic messaging standards are no longer acceptable. Firms may document their arrangements in any legally binding form. Non-electronic methods, including recorded telephone calls, may be used only during documented temporary technical disruptions or service outages. ESMA called on participants across the trading and settlement chain to finalize technical preparations, assess the readiness of clients and service providers, and begin testing as soon as possible.
European Securities and Markets Authority finalizes T+1 messaging guidelines ahead of 7 December 2026 compliance deadline
The European Securities and Markets Authority has finalized messaging guidelines supporting the EU’s transition to T+1 settlement on 11 October 2027. From 7 December 2026, investment firms and professional clients must use electronic, standardized and machine-readable methods for allocations and confirmations, with non-electronic channels limited to temporary technical disruptions. Market participants should now complete preparations and begin testing across the settlement chain.