Asset managers have voiced support for the way that European policymakers intend to move towards T+1 settlement in EU securities markets.
The European Commission and the main EU markets and banking regulators issued a joint-statement to accelerate technical work to prepare for T+1 in the EU.
Members of the European Fund and Asset Management Association (Efama) said they “applaud” the statement and welcomed the proposal to set up a governance structure.
Efama said it wholeheartedly agreed with the underlying rationale for the move and that misalignment with a key market like the US – which has already adopted T+1 – generates ongoing costs, ultimately borne by the end-investor, and that over time, the misalignment will also harm the competitiveness of European products, particularly among global investors.
The trade body, which is made up of national asset management associations, noted that the statement refers to the interconnectedness of EU markets with other jurisdictions in Europe, and the need to coordinate the timing of the move. It goes on to point out the need to accelerate the technical work to facilitate such a coordination.
Efama said that end-2027, as currently indicated for the UK, is a feasible date for a broader European transition, including the UK and Switzerland.
