Following the publication of the EU T+1 Industry Committee's updated handbook, Val Wotton, Managing Director and Global Head of Equities Solutions at DTCC, commented on the critical need for settlement standardisation as Europe moves towards a T+1 settlement cycle.
"The EU T+1 Industry Committee’s updated handbook clearly emphasizes strengthening the standardization and automation of standing settlement instructions (SSIs) across European markets," said Wotton. He highlighted that this aligns with the Financial Markets Standards Board (FMSB) framework.
As settlement times compress towards the proposed 2027 deadline, Wotton stressed that the ability to exchange clean, validated, and accurate SSIs through automated systems is "no longer optional."
"It is foundational to reducing operational risk, improving efficiency, and enabling true straight-through processing," he added. Wotton pointed out that moving away from manual SSI processes is a critical step to address pre-settlement inefficiencies that often lead to matching breaks and settlement fails.
DTCC supports the adoption of FMSB-aligned practices, which Wotton described as "key enablers of a more resilient and scalable post-trade environment." He noted the importance of high-quality SSI data being available at the point of trade matching to ensure efficiency in complex, cross-border markets.
"By reinforcing the importance of automated, standardized SSI management at scale, the handbook helps lay the foundation for a more consistent and efficient post-trade ecosystem," Wotton concluded, stating that it strengthens industry readiness for Europe’s transition to T+1 in October 2027.
