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At an ECB event on 29 October 2026, Piero Cipollone said Europe is preparing to move securities settlement from T+2 to T+1 on 11 October 2027. He described the change as part of a wider modernisation agenda that includes updates to the TARGET2-Securities platform and Eurosystem work on DLT-based assets and tokenised settlement. Preparations and testing are still underway.
European securities markets are due to move to next-day, or T+1, settlement on 11 October 2027, ECB Executive Board member Piero Cipollone said at an industry event in Frankfurt on 29 October 2026. He framed the change as part of a broader effort to modernise Europe’s financial infrastructure, alongside work on distributed ledger technology and tokenised assets.
Under T+1, the period between a securities trade and the exchange of the asset for payment falls from two business days to one. Cipollone said the shorter cycle can reduce market and counterparty risk, while requiring firms and infrastructure providers to update post-trade processes, including through greater standardisation and automation. The move is intended to support more efficient cross-border investment and keep European markets aligned with international developments, he said.
The Eurosystem operates TARGET2-Securities (T2S), which settles securities and cash in central bank money. Cipollone said the platform already handles significant volumes on T+1 and T+0 schedules, so the change does not start from a wholly new settlement capability. The Eurosystem plans to adjust some T2S processes, including its night-time settlement process, with those changes planned for June 2027, ahead of the October migration.
Cipollone also described steps on tokenised finance. Since 30 March 2026, the Eurosystem has accepted certain marketable assets issued in central securities depositories using DLT as eligible collateral for its credit operations, according to his speech. Since 21 September, the Eurosystem’s Pontes service has enabled settlement of wholesale transactions in tokenised assets in central bank money by connecting market DLT platforms with TARGET Services. The ECB is also assessing whether, and under what criteria, DLT-based assets outside currently eligible settlement systems could qualify as collateral.
Faster Settlement, Broader Market Changes
The change is relevant beyond the settlement date itself. A one-day cycle leaves less time for firms to reconcile trades, arrange funding and resolve errors before delivery and payment are due. Cipollone said processes that could be managed within T+2 may not remain workable under T+1, making operational readiness across market participants a central part of the shift.
The ECB’s stated case is that more efficient post-trade infrastructure can help capital move across borders and improve access to European markets. That could support the EU’s goal of deeper, more integrated capital markets, though the speech does not quantify expected gains or establish that T+1 alone will deliver them. The parallel work on tokenisation matters because it tests how central bank settlement money can be used alongside newer digital market platforms.
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From T+2 to TARGET Services
Cipollone delivered the keynote at the EU T+1 Industry Committee’s “One year to T+1” event in Frankfurt on 29 October 2026. The date for migration is 11 October 2027, less than a year after the speech. The ECB, European Securities and Markets Authority and European Commission are supporting market preparations, while the industry committee coordinates work across public authorities and private firms.
The settlement project sits within a wider Eurosystem programme that Cipollone said includes modernising wholesale payments and securities settlement, preparing for a digital euro, and improving cross-border payments. On DLT, the speech points to specific operational steps already taken: accepting some DLT-issued assets as collateral and using Pontes to connect tokenised transactions with central bank money. These initiatives are related in the speaker’s account, but they are separate projects with different functions.
“T2S already supports shorter settlement cycles. It already settles substantial volumes of transactions on a T+1 and even a T+0 basis.”
— Piero Cipollone, ECB Executive Board member
Readiness and DLT Eligibility Remain Open
The speech sets out the planned timetable but does not provide a detailed assessment of each market participant’s readiness, remaining implementation tasks or testing results. Cipollone said implementation and testing must continue, and the ECB did not say that all operational changes are complete. The planned June 2027 T2S adjustments and the October market migration remain future milestones.
The Eurosystem’s review of whether DLT-based assets outside currently eligible settlement systems could be accepted as collateral is also ongoing. Cipollone did not specify a decision date, final eligibility criteria or which asset types might qualify. The speech describes Pontes as enabling wholesale tokenised transactions to settle in central bank money, but does not give transaction volumes or an assessment of its broader market adoption.
Testing Ahead of October 2027
Market participants and European authorities are expected to continue implementation work and testing in the months ahead. The Eurosystem plans changes to T2S night-time settlement processes in June 2027; the market-wide move to T+1 is scheduled for 11 October 2027. Cipollone said the ECB will keep working with market participants and other authorities on the transition.
Separately, the Eurosystem will continue assessing possible collateral treatment for additional DLT-based assets. The supplied speech excerpt begins to describe planned enhancements to Pontes but ends before giving their details, so the nature and timing of those enhancements are not established here.
Key Questions
What is T+1 securities settlement?
T+1 means a securities trade is scheduled to settle one day after it takes place, reducing the settlement period described in Cipollone’s speech from two days to one.
When is Europe scheduled to move to T+1?
The planned market migration date is 11 October 2027. Cipollone said implementation and testing are still needed before the change.
What changes are planned for TARGET2-Securities?
The Eurosystem plans adjustments to some T2S processes to support the tighter timetable, including changes to the night-time settlement process planned for June 2027.
How does the ECB’s work on tokenisation relate to settlement?
The Eurosystem says Pontes connects market DLT platforms with TARGET Services so wholesale transactions in tokenised assets can settle in central bank money. The ECB is also reviewing whether some additional DLT-based assets could qualify as collateral.
Source: ecb.europa.eu
