T+1 means that the settlement of a securities trade executed on a trading venue must occur on the business day following the day on which the trade is executed (trade date, T). This represents a reduction from the current T+2 settlement cycle.

The official go-live date for the T+1 settlement cycle across the European Union (EU), European Economic Area (EEA), the United Kingdom, and Switzerland is October 11, 2027. This means that as of trade date October 11, 2027, the new cycle will apply. This means that on the settlement day October 12, 2027, transactions with trade date October 8 and October 11 will settle simultaneously.

The strategic decision to move to T+1 aims to reduce counterparty and market risks, align with global markets like the U.S., and enhance the overall efficiency and competitiveness of Europe's capital markets.

Clearstream is following the High-Level Roadmap (HLRM), its addenda, and the EU T+1 Securities Settlement Handbook published by the EU T+1 Industry Committee. Clearstream played a pivotal role in this collaborative effort, contributing to all working groups and co-chairing both the Settlement and the Legal and Regulatory working groups.

To ensure readiness, you should focus on the following actions:

• Increased automation of middle and back-office procedures to achieve end-to-end Straight-Through Processing (STP).
• Early completion of allocation and confirmation processes to ensure early instruction submission and matching at the CSD
• Standardization of Standing Settlement Instructions (SSIs) as per the published market practices.
• Greater use of optimization tools like Hold & Release, Partial Settlement, Securities Lending & Borrowing, and Auto-Collateralization.

Clearstream believes that if market participants adopt the recommended market practices and leverage the full suite of available services, there should not be a significant increase in settlement fails following the transition period.

The recommendations are based on an "adhere or explain" principle. This means you should implement these recommendations or be prepared to explain to regulators and counterparties why they are not being adhered to, to minimize negative impacts.

The core CSDR penalty mechanism is not changing. However, as part of the CSDR Refit, a few additional exemptions have been identified by ESMA. The precise use of the transaction type identifiers in settlement instructions could provide exemptions from penalties for certain operations, such as primary market issuance.

The harmonized timetable establishes a new rhythm for the market. Key deadlines include:

• 17:00 on Trade Date (T): Standardized deadline for stock loan recall notifications.
• 23:00 on Trade Date (T): Deadline to complete trade allocations and confirmations.
• 23:59 on Trade Date (T): Recommended deadline for settlement instructions to be submitted to CSDs to leverage night-time settlement.
• 00:00 on Settlement Date (T+1): Start of the main T2S night-time settlement sequence.
• 11:00 on Settlement Date: Cut-off for instructions to be part of the gating event
• 16:00 on Settlement Date (T+1): Harmonized DvP (Delivery-versus-Payment) cut-off time for settlement on the T2S platform.
• 18:00 on Settlement Date (T+1): Harmonized FoP (Free of Payment) cut-off time for settlement on the T2S Platform

Please note that the exact timings of the settlement processes are for T2S only. The ICSD will follow its existing schedule.

Yes, the deadlines will be harmonized as follows:

• Instruction submission: The industry recommendation is for all settlement instructions to be submitted to the Securities Settlement System (SSS) by 23:59 CET on trade date (T) .
  Note: 
  Instructions submitted to Clearstream after this time will still be processed for settlement on T+1, provided they are sent before the final market DvP and FoP cut-off deadlines. These instructions will be processed during the real-time settlement windows.
• CSD market cut-offs: For Clearstream Europe (CEU) and LuxCSD settling on the T2S platform, harmonized cut-offs will be 16:00 CET for DvP and 18:00 CET for FoP (Free-of-Payment).
• ICSD market cut-offs: For Clearstream Banking S.A. (CBL), the existing settlement cut-off times will not change in order to maintain operational flexibility for its global client base.

Yes. The T2S Night-Time Settlement (NTS) schedule will be modified to support T+1.

The main change is a postponement of the first NTS cycle's main settlement sequence from approximately 20:00 to 00:00 CET. This creates a larger window for participants to submit instructions from later-closing venues and CCPs.

In addition to the postponement of the start of the first NTS cycle, the cycle will also be enhanced by a dedicated partial settlement window at the end of the cycle. Both changes are planned to be applied in T2S from June 2027.

Impact on your reporting

The adjustment to the start time of the NTS sequence will directly affect the timing of settlement reporting produced by T2S. Based on current assumptions and internal estimates, you can expect settlement reports to be available in two indicative batches:

• the first between 01:30 CET and 02:00 CET, and
• the second between 02:45 CET and 03:15 CET.

These timings are provided for guidance purposes and remain subject to confirmation. You should assess your internal processes and downstream dependencies accordingly.

The "gold standard" refers to a set of market practices designed to eliminate settlement instruction errors and the need for manual repairs. It focuses on three pillars: the correct usage of PSET/PSAF, process automation for SSI exchange, and the use of specific transaction identifiers.

Note

Since these SSI enhancements primarily impact pre-settlement stages, they do not require system changes within the Clearstream environment. However, Clearstream strongly recommends that you implement these practices to support early matching of instructions at the CSD.

Correct and consistent use of these fields is critical for routing and transparency:

• Place of Settlement (PSET): This field must always be populated with the BIC11 of the CSD where your counterparty is located (e.g., CEDELULLXXX for an internal CBL trade, DAKVDEFFXXX for a trade settling in Clearstream Europe). It is populated in field :95P::PSET.
• Place of Safekeeping (PSAF): This field identifies the specific depository where the securities are held (e.g., ICSD followed by CEDELULLXXX). It should be used if the same ISIN is held in multiple locations.

The goal is to move away from manual methods like PDF or fax and establish a fully automated, interoperable framework. All participants are expected to adopt a standardized set of ISO 20022 (reda) and FIX messages for managing the entire SSI lifecycle (Create, Update, Delete, Status Advice, Cancel). This is a collective effort requiring you to engage with your counterparties and leverage industry utilities.

Using specific transaction codes in every settlement instruction is a market practice for two key reasons:

1. Regulatory transparency:  Providing the correct transaction identifier can be beneficial as ESMA has defined new transaction types that would not incur a settlement penalty, should these settle late.
2. Accurate reporting: It ensures compliance with CSDR technical standards, allowing (I)CSDs like Clearstream to report settlement fails with greater accuracy.

To comply, you must ensure every instruction includes the specific ISO transaction type in field :22F::SETR// (for ISO 15022) or the equivalent in ISO 20022. Kindly refer the full list of transaction codes here.

Current analysis shows the TRAD indicator is often used as a "catch-all" which is directly reflected in cash penalty figures. Using specific codes can enhance reporting and allow operational teams to better prioritize exceptions.

Note

The transaction type identifier is not a matching field. Its incorrect usage will not impact settlement matching. Its primary role is in post-trade processes for accurate reporting and penalty application.

The official EU T+1 market practice establishes partial settlement as the default standard.

• Default eligibility: All settlement instructions are recommended to be eligible for partial settlement by default. The only way to prevent it is by explicitly using the NPAR (No Partial Settlement) indicator.
• Bilateral opt-outs: To prevent partial settlement, both counterparties must agree bilaterally and both must include the NPAR indicator in their instructions.

Clearstream's implementation

To align with this principle, all new accounts opened with Clearstream will be automatically enabled for partial settlement and release. However, Clearstream's processing logic adheres strictly to the CSDR framework, where technically, a single, unilateral NPAR instruction from either counterparty is sufficient to prevent a transaction from settling in parts.

The Gating Event is a coordinated window scheduled for 11:00 CET on the settlement date. It functions as an "automatic hold and release" for specific transactions to prevent intraday liquidity drains and settlement gridlock. With the compressed T+1 timeline reducing netting opportunities, it is expected that a much larger volume of SFTs be conducted on a T+0 basis any might require gross settlement, straining liquidity. This gate allows for a form of synchronized settlement and technical netting with previously initiated transactions to occur within the (I)CSD.

Participation is optional and unilateral. You can choose to flag an instruction for inclusion in the gate by using the new Swift tag STCO//GATE (to be introduced in November 2026). The instruction will then be held and automatically released for settlement at 11:00 CET. While designed for all types of transactions and instruments the main use would be for the full spectrum of SFTs, including repos, securities lending, and buy/sell backs etc. A dedicated market practice is currently under discussion in the industry to clarify usage aspects and instrument scope.

The most significant change is the alignment of key dates. For standard distributions (like dividends), the ex-date and the record date will now occur on the same business day. This eliminates the one-day interval and requires your systems to be prepared.

Clearstream's automated market claims functionality prevent any misallocation of proceeds for trades that settle after the new, aligned record date.

While the long-term industry goal is to fully automate buyer protection workflows, the industry has concluded that a fully automated solution is not a priority for implementation before the October 2027 deadline. You should therefore plan to continue using existing processes for managing buyer protection at go-live.

Clearstream’s Data Solutions suite provides predictive analytics and clear visibility to support your transition. Key tools include:

• SettlementNext: Features a T+1 Scorecard to monitor readiness and a Settlement Prediction tool that uses AI to forecast settlement outcomes up to four days in advance. Learn more.
• CollateralNext and LiquidityNext: Provide holistic views of collateral and intraday liquidity, which is essential for proactive management in a compressed cycle. Learn more about CollateralNext and LiquidityNext.

Clearstream offers a robust suite of functionalities available today:

• Hold & Release: Allows you to submit instructions while placing a "settlement block" on them, which can be released manually or automatically. This helps reduce late matching fail penalties. 
• Automated Securities Lending (ASL): Acts as a safety net to prevent settlement fails by automatically sourcing securities when needed. 
• Auto-Collateralisation (in T2S/CEU) and CmaX (in CBL): Automatically generate cash needed to complete transactions and manage your liquidity most efficiently. 
• Smart Realignment service: An automated tool that moves securities between a client's eligible "own assets" accounts (intra-CSD or cross-CSD between CEU and CBL) to cover a pending delivery fail. 

T+1 Strategic tip

If you are operating across both CEU and CBL, subscribing to our Smart Realignment service should be your top T+1 preparation priority. The service automates cross-border realignment, removing any potential manual bottlenecks. 

Find the subscription forms here.

The plan is structured around three pillars:

1. Pillar 1: Internal Readiness (Now – October 2027): This phase is for firms to conduct internal gap analysis and improve their own processes.
2. Pillar 2: Community-Wide Testing (2027): Five specific testing windows are scheduled in 2027 for all market participants to test end-to-end flows with their counterparties. Clearstream will have its CBL and CEU test environments open during all five windows.
3. Pillar 3: New EU Operational Day (April – October 2027): A dedicated "green period" for EU participants to test changes related to the new harmonized EU operational day.

Yes. As a Clearstream client, you do not need to wait for the formal 2027 test windows.

Our test environments are available now to validate your use of existing functionalities crucial for T+1, such as partial settlement, Hold & Release, and ASL. New functionality that becomes available in the run-up to T+1 can be tested during the community wide testing period. Clearstream will announce the exact dates through its regular channels.

Yes. Clearstream has published a comprehensive T+1 Implementation Guide (CSD Handbook), available here.

It will be supplemented by regular updates via monthly newsletters and quarterly webinars.

To support your preparations, we recommend the following resources to stay informed:

• EU T+1 Industry Committee Website: Official announcements and publications, including Guides & Resources
• Clearstream's T+1 web page: Central hub for updates, resources, and newsletters
• Clearstream's T+1 readiness checklist: Self‑assessment tool to evaluate your readiness against the EU T+1 recommendations
• Clearstream's T+1 webinars: In-depth insights and updates, including recordings of past episodes
• Direct communications: Dedicated contact channel for specific inquiries to the Clearstream T+1 team via T+1@clearstream.com.