With one year to go until the UK and EU transition to T+1 settlement, Marius Jurgilas, CEO of Axiology and former board member of the Bank of Lithuania, is calling on European markets to raise their ambitions — arguing that matching a standard the US adopted in May 2024 should not be the ceiling.
"T+1 is a step in the right direction, but it should not be the limit of our ambition," said Jurgilas, who previously served as an economist at the Bank of England and Norges Bank. "Europe should be looking ahead, not just catching up."
Jurgilas points out that same-day settlement and atomic settlement — where cash and securities transfer simultaneously or not at all — are already technically achievable. He argues that regulators should be moving faster to enable wider adoption, working with institutions to address the funding and operational challenges in parallel with the T+1 transition, rather than waiting until it is complete.
For firms currently investing in new infrastructure and adapting their processes, Jurgilas sees an opportunity to plan beyond the immediate regulatory requirements. "By testing how faster, atomic settlement would work for their business — including how they trade funds and manage liquidity — firms can make T+1 readiness and longer-term improvements part of the same investment," he said, warning that those who do not risk "paying for another overhaul in a few years' time."
His message to market participants is clear: Europe needs to accelerate the pace of change, but firms do not need to wait for the next regulatory deadline to start preparing.
