With just 18 months until Europe transitions to a T+1 settlement cycle, firms must move beyond strategy and begin implementing operational changes to ensure they are ready, according to Val Wotton, Managing Director and Global Head of Equities Solutions at DTCC.
In a statement marking the 18-month milestone, Wotton emphasized the urgency for firms to optimize their post-trade processes. He highlighted that Europe's transition presents unique challenges not seen in the U.S. move to T+1.
“Unlike the U.S., Europe’s transition comes with multiple layers of complexity due to its highly fragmented landscape, which spans multiple trading venues, CCPs, CSDs and currencies,” Wotton stated.
To meet the accelerated timeline, Wotton stressed that inefficiencies in the post-trade lifecycle—including trade allocation, confirmation, matching, and settlement—must be eliminated. He advised firms to begin identifying risks from counterparties who have not automated their workflows and to assess their reliance on third-party technology providers for any potential gaps.
“The next 18 months are therefore critical,” Wotton urged. “Firms that invest now in automation, reimagined post-trade workflows, data standardization and cross‑market alignment, while engaging with clearing and post‑trade partners, will be best positioned to navigate Europe’s transition successfully.”
He concluded by framing the preparation period as a crucial foundation for the future of the market. “At DTCC, we view this phase as foundational to ensuring that Europe’s move to T+1 is not only enabled, but strengthens market resilience and efficiency.”
