On 13 February 2025, the European Securities and Markets Authority (ESMA) launched a consultation to improve settlement efficiency across various areas. The consultation proposes amendments to the technical standards on settlement discipline, including:
- Reduced timeframes for allocations and confirmations
- The use of electronic, machine-readable allocations and confirmations based on international standards
- The implementation of hold & release and partial settlement by all central securities depositories
Additionally, ESMA is seeking stakeholders’ views on further measures that could enhance settlement efficiency, though no specific policy proposals have been made yet.
This consultation considers the transition to T+1 in the EU and aligns with the legislative proposal from the European Commission, published on 12 February 2025, as well as ESMA’s roadmap outlined in its Final Report on Shortening the Settlement Cycle.
Deadline for Submissions: 14 April 2025
For more information [here]