The Malta Financial Services Authority (“MFSA”) has issued a Circular addressed to Central Securities Depositories, investment firms, and other market stakeholders concerning the upcoming transition to a T+1 settlement cycle under Regulation (EU) 909/2014 – the Central Securities Depositories Regulation.
On the 30th June 2025, the EU T+1 Industry Committee published its High-Level Road Map (“HLRM”) outlining the shift from the current T+2 to a T+1 settlement cycle, with full implementation targeted for the 11th October 2027. A feedback phase by the European Securities and Markets Authority (“ESMA”) is open until the 31st August 2025, encouraging industry input to support the transition process.
The HLRM emphasises:
- Enhanced efficiency and competitiveness of EU markets;
- The need for collaboration across associations, market infrastructure providers, and public authorities;
- Technological upgrades to support shorter settlement time frames;
- Cross-border cooperation with the UK and Switzerland to reduce systemic risks across interconnected European markets; and
- Clear interim milestones including development of market practices and testing phases.
While adherence with each recommendation is not mandatory, market participants are expected to explain any non-compliance and propose alternative risk-mitigating measures.
The MFSA encourages all relevant stakeholders to review the HLRM, assess the applicability of its recommendations to their operations, and begin preparations accordingly. Ongoing engagement and feedback are key to ensuring a smooth and efficient transition. A copy of the HLRM can be accessed through this link.
For more information, stakeholders are asked to consult the ESMA’s dedicated page on the T+1 settlement initiative and provide feedback on the HLRM here.
For further clarifications please email: [email protected].
