Financial transactions within 24 hours from 2027. Brussels works on halving the timing within the European bags, to make the capital markets in the European Union most competitive worldwide. The proposal of the EU Commission would predict the reduction from two to one day of financial operations and the consequent “sectlection”, in Italian “regulation”, a procedure through which the buyer receives the title and the seller receives the cash.
The amendment to the study of the Commissioner for Financial Affairs, Maria Luís Albuquerque, would change the 2014 European reference legislation and should enter into force from 11 October 2027.
The amendment of Brussels
As explained by the Portuguese commissioner, the period of two years Before the introduction of the new legislation it would allow “market operators sufficient time to develop, test and agree on processes and standard to ensure an orderly introduction of our proposal on the European Union markets”.
“Our proposal will reduce costswill increase efficiency and improve liquidity, as required by the financial sector -explained Maria Luís Albuquerque -. We will also commit ourselves to coordinating ourselves with the other European countries that intend to follow the same procedure, in particular with the United Kingdom and Switzerland, given the close links among our financial markets “.
The cut of the times
Brussels’ proposal, awaited at the examination of Parliament and the European Council, comes with the support of the European system of central banks (SEBC) and ESMA, the surveillance authority of financial instruments and markets, which had drawn up a relationship with the recommendations also relating to the cutting of transactions.
Both the commission and the authorities have provided benefits Tangible from the revision, such as the increase in automation and efficiency of post-trading processes, the decrease in risks and margin requirements, beyond the elimination of costs and obstacles related to misalignments between bags.
In detail, “the legislative change proposed would reduce the cycle of regulation on securities – such as actions or bonds – performed in the EU negotiation offices for two working days (the so -called ‘T+2’) to a working day after negotiation ( ‘T+1’) “. Timing that are already underway in the case of public debt securities.
As explained by the European Commission, the shorter are the times of the “settlement” plus yes reduce risks And less time they have to wait for investors to receive money or qualifications, with greater possibility of carrying out other operations.
The measure has already been adopted in the world by different countries, such as China, India, the United States and Canada, and will allow European bags to reduce i costs linked to the differences in rules with the other international markets.
The modification will also avoid the fragmentation between the same European markets, where approximately every day they are regulated 4 thousand billion titles.
