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Piero Cipollone said Europe is due to move to next-day securities settlement on Oct. 11, 2027, and that preparations must accelerate over the coming months. He described T+1 as part of a wider modernisation effort that includes changes to the Eurosystem’s settlement platform and services for tokenised assets. The ECB says T+1 is technically supported by existing infrastructure, but implementation and testing remain under way.
Europe is scheduled to shorten the standard securities settlement cycle from two business days to one on Oct. 11, 2027, European Central Bank Executive Board member Piero Cipollone said in a speech on Oct. 29. He said the change will require continued coordination, implementation and testing by market participants, and forms part of a broader effort to modernise European financial infrastructure.
Cipollone spoke at an EU T+1 Industry Committee event in Frankfurt, held less than a year before the planned migration. Under T+1 settlement, the transfer of securities to a buyer and payment to a seller are completed one day after a trade, rather than two days afterward. The ECB, European Securities and Markets Authority and European Commission support the market’s preparations, he said.
The Eurosystem operates TARGET2-Securities (T2S), which settles securities transactions in central bank money by exchanging cash and securities simultaneously. Cipollone said the platform already handles substantial transaction volumes on T+1 and T+0 cycles, so the move does not start from scratch. The Eurosystem is adapting some processes, including its night-time settlement process, with changes planned for June 2027, ahead of the October migration.
The speech also set out work on tokenised finance. Cipollone said that since March 30, 2026, the Eurosystem has accepted certain marketable assets issued in central securities depositories using distributed ledger technology as eligible collateral for its credit operations. Since Sept. 21, 2026, its Pontes service has enabled wholesale transactions in tokenised assets to settle in central bank money. The ECB is also assessing whether, and under what criteria, DLT-based assets outside currently eligible settlement systems could qualify as collateral.
How T+1 Could Reshape European Markets
A shorter settlement cycle can reduce the period during which buyers and sellers are exposed to market and counterparty risk, Cipollone said. The practical effect will depend on how firms adapt their post-trade operations: transactions will need to be processed on a tighter timetable, putting pressure on workflows and systems that rely on manual steps or inconsistent practices.
Cipollone presented the deadline as a catalyst for standardisation and automation, not simply a technical change to settlement timing. More efficient post-trade processes could make it easier for capital to move across borders and for investors to access European markets. Those outcomes are goals stated in the speech, not measured results of the planned change.
The settlement transition and tokenisation work also raise questions about how European infrastructure will operate as financial assets and services become more digital. The Eurosystem’s stated role is to provide settlement in central bank money and keep its collateral rules aligned with innovation while preserving safeguards.
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Europe’s Settlement Modernisation Timeline
The European market is preparing to move from T+2 to T+1, with the migration date set for Oct. 11, 2027. Cipollone said the EU T+1 Industry Committee has coordinated work across a financial landscape that remains complex and fragmented. He praised cooperation between public authorities and private firms, while warning that the transition is not yet complete.
The ECB speech places T+1 alongside other Eurosystem work, including modernising wholesale payments and securities settlement, preparing for a digital euro, and developing cross-border payments. Cipollone described these as parts of a shared strategy for adapting the euro and European markets to technological and market changes.
For tokenised assets, the speech cited two developments already in operation: eligibility for specified DLT-issued assets held in central securities depositories as collateral, and Pontes, which links market DLT platforms with TARGET Services for settlement in central bank money. The ECB said it is still examining possible collateral eligibility for DLT-based assets outside currently eligible settlement systems.
“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
Remaining Work Before October 2027
The speech does not provide a detailed readiness assessment for individual firms or markets, nor does it specify outstanding implementation milestones beyond the planned T2S night-time process changes in June 2027. Cipollone said testing and implementation must continue, but did not quantify how much work remains or identify specific unresolved obstacles.
The ECB has not yet decided whether, how or under what criteria DLT-based assets outside currently eligible settlement systems could be accepted as collateral. The speech also refers to further enhancements to the Eurosystem’s tokenisation work but the supplied text ends before giving details. No performance results or quantified estimates of the transition’s effects on risk, costs or market competitiveness were included.
Testing Ahead of the T+1 Migration
Market participants and European authorities are expected to continue implementation and testing in the months before the scheduled Oct. 11, 2027 migration. The Eurosystem’s planned June 2027 changes to T2S’s night-time settlement process are a named infrastructure milestone. Cipollone said the ECB will keep working with market participants and other authorities to support the transition.
Separately, the Eurosystem’s assessment of collateral eligibility for additional DLT-based assets remains ongoing. The speech signals further development of tokenised settlement services, but the supplied material does not set out a specific next announcement date or a detailed timetable for those additional steps.
Key Questions
What is changing under T+1 settlement?
Settlement is due to move from two business days after a securities trade to one business day. The buyer receives the security and the seller is paid on the shorter timetable.
When is Europe scheduled to move to T+1?
The planned migration date is Oct. 11, 2027, according to Cipollone’s Oct. 29, 2026 speech.
What role does T2S play in the transition?
TARGET2-Securities is the Eurosystem platform for settling securities transactions in central bank money. Cipollone said it already processes substantial volumes on T+1 and T+0 cycles, and that changes to its night-time settlement process are planned for June 2027.
What has the ECB said about tokenised assets?
The Eurosystem has accepted certain DLT-issued assets held in central securities depositories as eligible collateral since March 30, 2026. Pontes has enabled wholesale tokenised-asset transactions to settle in central bank money since Sept. 21, 2026. The ECB is still assessing possible eligibility for other DLT-based assets.
Is the transition already complete?
No. The migration is scheduled for October 2027. Cipollone said implementation and testing still need to advance, and did not give a detailed account of readiness across individual market participants.
Source: ecb.europa.eu
