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ECB Executive Board member Piero Cipollone said Europe is preparing to shorten securities settlement from two days to one on 11 October 2027. He described T+1 as part of a wider financial infrastructure overhaul that includes changes to the Eurosystem’s T2S platform and initiatives for tokenised assets. The ECB says implementation and testing remain ahead.
Europe is scheduled to move to next-day securities settlement on 11 October 2027, shortening the time between a trade and the exchange of securities and cash from two days to one, European Central Bank Executive Board member Piero Cipollone said on 29 October. He said the change is part of a broader effort to modernise Europe’s financial infrastructure, including preparations for tokenised finance.
Speaking at an EU T+1 Industry Committee event in Frankfurt, Cipollone said the Eurosystem’s securities settlement platform, TARGET2-Securities (T2S), already processes substantial volumes of transactions on T+1 and even same-day, or T+0, terms. The platform settles securities against cash in central bank money. The ECB is adapting some processes to help the market work within the shorter timetable.
One planned change concerns T2S’s night-time settlement process, with adjustments scheduled for June 2027, ahead of the October migration. Cipollone said the ECB would continue working with market participants and other European authorities. He called the months ahead critical for implementation and testing, but did not provide a detailed readiness assessment or identify any specific unresolved technical problems.
Cipollone also described the Eurosystem’s work on distributed ledger technology. The ECB said that, since 30 March 2026, it has accepted certain assets issued in central securities depositories using DLT as eligible collateral for its credit operations. Since 21 September 2026, the Eurosystem’s Pontes service has enabled wholesale transactions in tokenised assets to settle in central bank money by connecting market DLT platforms with TARGET Services.
How T+1 Could Reshape Settlement
Moving to T+1 means firms will have less time to complete post-trade tasks, including matching transaction details and arranging the cash and securities needed for settlement. Cipollone said the shorter cycle can reduce market and counterparty risk. He also argued that it will put pressure on inefficient processes that could be accommodated under the existing T+2 timetable.
The change matters beyond the settlement date itself. According to Cipollone, better-standardised and more automated post-trade operations could make it easier for capital to move across borders and for investors to access European markets. Those outcomes could support the EU’s aim of deeper, more integrated capital markets. They are objectives described in his speech, not results that have already been measured.
The tokenisation work signals a related shift: the Eurosystem is preparing to connect emerging digital-asset markets with central bank money and established payment and settlement services. That could give market participants a route to settle tokenised transactions using central bank money, while keeping eligibility and collateral safeguards under review.
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From T+2 to Digital Settlement
Under the current T+2 settlement cycle, the exchange of securities and payment generally takes place two business days after a trade. The planned T+1 change will reduce that interval by one day. Cipollone’s speech framed the deadline as part of a wider Eurosystem programme that also covers wholesale payments, cross-border payments, a potential digital euro and the use of new technologies.
The EU T+1 Industry Committee has coordinated work among public authorities and private-sector participants. Cipollone credited that cooperation with progress so far, while warning that preparations are not complete. The ECB, European Securities and Markets Authority and European Commission support the market’s preparations, according to the speech.
For tokenised finance, the ECB described two steps already in operation: accepting certain DLT-issued assets as collateral under stated conditions, and Pontes settlement of wholesale tokenised-asset transactions in central bank money. The bank is also assessing whether and under what criteria DLT-based assets outside currently eligible settlement systems could qualify as collateral.
“T2S already supports shorter settlement cycles.”
— Piero Cipollone, ECB Executive Board member
Readiness and Token Collateral Criteria
The speech did not state how many firms or market participants had completed their preparations, provide an overall readiness score, or describe contingency plans if testing reveals problems. The schedule remains 11 October 2027, but Cipollone said implementation and testing still need to progress.
The ECB also has not yet set out a final decision on whether DLT-based assets outside currently eligible settlement systems will qualify as collateral, or the criteria that would apply. Cipollone said the Eurosystem is assessing the question and will maintain its requirement that collateral be adequate. The speech’s supplied text ends while describing a planned enhancement to Pontes, so further details about that work are not available here.
Testing Before October 2027
The immediate next stage is continued preparation and testing by market participants, public authorities and the Eurosystem. The planned June 2027 T2S night-time process changes are a milestone before the scheduled market migration in October. Cipollone said the Eurosystem would keep working with the industry and European authorities to support the transition.
Separately, the ECB’s assessment of possible collateral eligibility for additional DLT-based assets remains ongoing. The speech did not give a date for a decision or specify when further Pontes details would be released. The next substantive updates are likely to clarify progress on readiness, system changes and the Eurosystem’s policy approach to tokenised assets.
Key Questions
When is Europe scheduled to move to T+1 settlement?
The scheduled date is 11 October 2027, according to ECB Executive Board member Piero Cipollone’s speech on 29 October 2026.
What does T+1 settlement mean?
It means securities and payment are settled one day after a trade, rather than two days afterward under T+2. Cipollone said the shorter timetable can reduce market and counterparty risk.
What changes are planned for TARGET2-Securities?
The Eurosystem plans changes to T2S’s night-time settlement process in June 2027. Cipollone said the platform already handles substantial T+1 and T+0 transaction volumes.
What is Pontes?
Pontes is a Eurosystem service that, since 21 September 2026, has enabled wholesale transactions in tokenised assets to settle in central bank money by connecting market DLT platforms with TARGET Services.
Will all DLT-based assets be eligible as ECB collateral?
No such decision was announced in the speech. The Eurosystem is assessing whether and under what criteria DLT-based assets outside currently eligible settlement systems could qualify.
Source: ecb.europa.eu
