TL;DR
Piero Cipollone said Europe is due to move from two-day to next-day securities settlement on Oct. 11, 2027, and that preparations now need to intensify. The ECB plans changes to its T2S settlement platform in June 2027 and is also developing services for tokenised transactions settled in central bank money. The speech did not provide further details on planned enhancements to the Pontes service.
Europe is due to move to next-day securities settlement on Oct. 11, 2027, European Central Bank Executive Board member Piero Cipollone said on Oct. 29, describing the shift as part of a wider effort to modernise the region’s financial infrastructure. The change will reduce the standard time between a securities trade and its settlement from two days to one, requiring market participants and settlement systems to adapt their processes.
Speaking at an EU T+1 Industry Committee event in Frankfurt, Cipollone said the approaching migration is more than a change to the settlement timetable. The ECB supports preparations alongside the European Securities and Markets Authority and the European Commission. He said the shorter cycle can reduce market and counterparty risk and will put pressure on firms to improve post-trade standardisation and automation.
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 volumes on T+1 and T+0 schedules, but that some processes are being adapted for the planned market-wide move. Changes to T2S’s night-time settlement process are planned for June 2027, ahead of the October migration.
Cipollone also set out the Eurosystem’s work on tokenised finance. He said the Eurosystem has accepted, since March 30, 2026, certain assets issued in central securities depositories using distributed ledger technology as eligible collateral for its credit operations. Since Sept. 21, the Pontes service has enabled wholesale tokenised-asset transactions to settle in central bank money, connecting market DLT platforms with TARGET Services.
How T+1 Pressures Post-Trade Systems
A one-day settlement cycle leaves less time to complete the operational steps between a trade and its settlement. Cipollone said processes that could be managed under T+2 may be harder to sustain under T+1, making standardisation and automation central to the transition. The change could lower the period during which buyers and sellers are exposed to unsettled transactions, although the speech did not quantify the expected reduction in risk.
The move also matters to Europe’s effort to make capital markets more integrated. Cipollone argued that more efficient post-trade infrastructure can help capital move across borders and make European markets easier for investors to access. That is the ECB’s assessment of the reform’s potential contribution, not a measured outcome reported in the speech. The practical effect will depend on how market participants implement the new timetable and whether operational changes work across Europe’s fragmented financial landscape.
The tokenisation programme is related but distinct from the T+1 deadline. Pontes and the ECB’s collateral policy work concern how digitally represented assets can connect to central bank money and Eurosystem operations. Together, the initiatives show the Eurosystem preparing both for faster conventional settlement and for newer forms of financial infrastructure.
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Europe’s Settlement and DLT Timetable
In securities markets, T+1 means settlement is scheduled for one business day after a trade, rather than two business days under T+2. Cipollone said Europe’s target date is Oct. 11, 2027. His remarks were delivered at an event titled “One year to T+1,” although the migration date he gave is less than a year from the speech date.
The ECB’s T2S platform supports securities settlement in central bank money across Europe. Cipollone said it already processes transactions on shorter cycles, so the planned migration does not begin from a system that has never handled T+1 or T+0 activity. The June 2027 night-time process changes are intended to help the platform operate under the tighter schedule.
For distributed ledger technology, the speech described steps already taken as well as work still under assessment. The Eurosystem began accepting a category of DLT-issued assets as collateral on March 30, 2026, and launched Pontes for wholesale settlement in central bank money on Sept. 21, 2026. The ECB is separately examining whether, and under what criteria, DLT-based assets outside currently eligible settlement systems might qualify as collateral.
„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 T+1 and Tokenisation Questions
Cipollone gave the planned T+1 date and the timing for T2S process changes, but the speech did not detail the full implementation and testing schedule, operational readiness measures or how individual firms will handle the change. It also did not report whether the migration date is subject to a formal review or identify specific risks that could delay it.
The ECB’s work on collateral eligibility beyond currently eligible settlement systems remains under assessment. Cipollone did not specify the criteria, eligible asset types or timetable for a decision. The speech’s final passage on plans to enhance Pontes is incomplete in the source material, so the scope, features and schedule of any further enhancements cannot be established from the available text.
The potential benefits described for T+1 and tokenisation are not quantified in the speech. The ECB did not provide estimates of cost savings, changes in settlement failures or the scale of any future market adoption. Those outcomes remain dependent on implementation and market participation.
Testing Before October 2027
The next stated milestone is the planned June 2027 changes to T2S’s night-time settlement process. Cipollone said implementation and testing must continue in the months leading to the market migration. The target for the change to T+1 remains Oct. 11, 2027, according to his speech.
The ECB said it will continue working with market participants and other European authorities to support the transition. Separately, the Eurosystem is assessing whether additional DLT-based assets could qualify as collateral and is expected to develop its tokenised-asset settlement work. The speech did not give dates for a collateral-policy decision or further Pontes developments, so those milestones remain unspecified.
Key Questions
What does T+1 securities settlement mean?
T+1 means that a securities trade is scheduled to settle one day after it is made. Cipollone said Europe currently plans to move from T+2 to T+1 on Oct. 11, 2027.
When will Europe move to T+1?
The target date given by ECB Executive Board member Piero Cipollone is Oct. 11, 2027. The speech said implementation and testing still need to advance before the migration.
What changes are planned for T2S?
The Eurosystem plans changes to the platform’s night-time settlement process in June 2027. T2S already processes substantial volumes on T+1 and T+0 schedules, according to Cipollone.
What is Pontes?
Pontes is a Eurosystem service that, since Sept. 21, 2026, has enabled wholesale transactions in tokenised assets to settle in central bank money, connecting market DLT platforms with TARGET Services.
Has the ECB decided which DLT assets can be used as collateral?
Not for all DLT-based assets. The Eurosystem is assessing whether, how and under what criteria assets outside currently eligible settlement systems could qualify. Cipollone did not give a decision date or detailed eligibility criteria.
Source: ecb.europa.eu
