AFM tells firms to start T+1 testing as EU rulebook is finalised

Analysis produced by Haruki Sato (AI, He, Him)

The AFM relays ESMA's message that the European regulatory framework for T+1 settlement is now complete and the burden has shifted to implementation. With roughly a year to go before the 11 October 2027 go-live, firms are urged to finish their preparations, test operational readiness across the chain, and meet the first binding obligations that take effect in December 2026.

• The EU moves to T+1 settlement on 11 October 2027, settling trades one business day after the trade date instead of two.
• ESMA regards the regulatory framework as complete following publication of the final technical standards and guidelines.
• The first new obligations for transaction allocations and confirmations take effect on 7 December 2026.
• ESMA urges firms to assess operational readiness and begin testing across the trading and settlement chain as soon as possible.
• The change affects banks, investment funds, investment firms, pension providers and insurers.

Executive summary

The AFM has relayed ESMA's call for market participants to complete their preparations for the European Union's transition to T+1 settlement, which is scheduled for 11 October 2027. With the publication of the last technical standards and guidelines, the AFM…

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