The CSDR Regulation will come into effect in 2015 and, as part of this mandate, a shorter T+2 settlement cycle will be introduced.
Consequently, securities transactions will settle two business days after trade date rather than the current three day period. Given that EuroCCP already undertakes T+2 settlement in Germany, there are minimal changes to be made from this European harmonisation.
The chart below details the implementation date of the forthcoming changes:
|Country Segment||Central Securities Depositary (CSD)||Date to move to T+2|
|Austria||OEKD||6th October 2014|
|Belgium||Euroclear Belgium||6th October 2014|
|Czech Republic||CSD Prague||6th October 2014|
|Denmark||VP Securities||6th October 2014|
|France||Euroclear France||6th October 2014|
|Finland||Euroclear Finland||6th October 2014|
|Germany||Clearstream Frankfurt||Already T+2|
|Hungary||KELER Ltd||6th October 2014|
|Ireland||Euroclear UK & I||6th October 2014|
|Italy||Monti Titoli||6th October 2014|
|Netherlands||Euroclear Nederland||6th October 2014|
|Norway||VPS||6th October 2014|
|Portugal||Interbolsa||6th October 2014|
|Spain||Iberclear||Q4 2015 (Equities)|
|Sweden||Euroclear Sweden||6th October 2014|
|Switzerland||SIX SIS||6th October 2014|
|United Kingdom||Euroclear UK & Ireland||6th October 2014|
|Depositary Receipts||Euroclear Bank||6th October 2014|
|US||Euroclear Bank||Remains T+3 out of scope|
Impact to EuroCCP Participants
EuroCCP’s client reporting will not be impacted by this market change. Following client consultation, the “Trade Date” netting model will be retained over this period.
As a consequence, trading undertaken on Friday 3 October will settle on a T+3 basis whereas trading undertaken on Monday 6 October will settle on a T+2 basis. This will result in two net trades created with settlement date 8 October for those markets which migrate on 6 October.
Although there are no technical changes or modifications to EuroCCP’s reporting, clients may wish to undertake testing prior to this change. EuroCCP will be pleased to provide testing facilities to its clients during July and any testing related queries should be forwarded to email@example.com.