What is T+1?
The transition to T+1 in the European Union marks a significant shift in the settlement of securities transactions. Under this model, the final transfer of securities and the corresponding cash payment occur one business day after the trade date, rather than within two business days (T+2), as currently specified in Regulation (EU) No 909/2014 on Central Securities Depositories.
T+1 is a recognised international standard that has already been implemented, or is in the process of being implemented, in several jurisdictions worldwide. It forms part of broader initiatives aimed at increasing the efficiency, resilience, and competitiveness of financial markets. In response to these developments, the Financial Supervision Commission (FSC) has launched a National Forum on the Transition to T+1 Settlement.
The shortened settlement cycle reflects the evolution of post-trade processes and is designed to:
Reduce counterparty risk
Improve operational efficiency
Enhance the competitiveness of European capital markets
Why T+1 matters?
The move to T+1 has a substantial institutional and market impact. A shorter settlement period reduces the time during which transaction counterparties are exposed to risk, contributing to greater financial-system resilience and more efficient use of capital by investors, issuers, and intermediaries alike.
In the context of dynamic global markets, adopting T+1 supports the harmonization of operational practices with leading international financial centers. The United States, Canada, Mexico, and Argentina transitioned to T+1 in May 2024, and this shift is already influencing cross-border trading volumes and settlement expectations.
The European Union will implement T+1 on 11 October 2027, with certain exceptions, including securities financing transactions (SFTs) such as repo transactions. The Swiss domestic markets also plan to move to T+1 in October 2027, in line with a recommendation of the Swiss Securities Post-Trade Council from January 2025. The United Kingdom’s planned transition on the same date further enhances the high level of synchronisation across Europe.
This coordinated approach reduces the risk of regulatory fragmentation and creates conditions for more efficient cross-border settlement, positioning European markets to take their place on the global T+1 map.
European Context
The European Parliament formally approved the legislation for the transition to T+1 in September 2025. Across the EU, the reform is being implemented through a coordinated framework, supported by the European Securities and Markets Authority (ESMA) and the European Commission.
A leading role in managing the transition is played by the EU Industry Committee on T+1, established specifically for this purpose. The Committee operates as an expert platform bringing together market infrastructures, investment firms, clearing and depository institutions, and other key stakeholders. Its primary role is to support coordination, harmonization, and readiness monitoring for T+1 at European level.
In June 2025, the Committee published its industry-led recommendations for the EU’s transition to T+1 in a European Roadmap. The Roadmap serves as a key reference for all stakeholders and outlines the main milestones related to technical requirements, testing procedures, and readiness monitoring at both European and national level.
National Forum on the Transition to T+1 Settlement
In response to these challenges and in line with European best practices—adapted to the specific needs of the Bulgarian capital market—the Financial Supervision Commission established the National Forum for the Transition to T+1 as a voluntary platform for cooperation between the regulator, market infrastructures, and other relevant stakeholders.
Mandate of the National Forum
The mandate of the National Forum includes the coordination of national efforts to prepare for and implement the T+1 standard.
The Forum is composed of representatives of the Financial Supervision Commission, market infrastructures, investment intermediaries, management companies, and other key capital-market participants whose activities are directly or indirectly affected by the transition to T+1.
The Forum’s activities are consultative in nature and aim to ensure a smooth, consistent, and efficient national transition.
Timeline
Preparation for the introduction of T+1 can be structured into several key phases:
Strategic planning and impact analysis
Technological and process adaptations
Integrated testing and final readiness checks
Go live
Meeting Minutes and Materials
This section publishes minutes, summaries, and other documents reflecting the work of the National Forum and progress toward T+1 readiness.
Useful Resources
This section provides access to selected analyses, guidelines, and external resources related to T+1, including materials from European and international institutions and regulators.
