Edition November 3, 2026

Next-day securities settlement, tokenisation and the transformation of Europe’s financial infrastructure

Europe is due to switch to next-day securities settlement on 11 October 2027, cutting the interval between a trade and delivery of the security to the buyer and payment to the seller from two days to one.

A shorter settlement cycle can reduce market and counterparty risk, while the transition is prompting a review of post-trade processes and requires greater standardisation, automation and innovation. The Eurosystem’s T2S platform already supports shorter settlement cycles and enables cash and securities to be exchanged simultaneously across Europe. Respondents’ willingness to contribute actively to Appia provides a strong basis for developing the initiative as a public-private partnership.

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