The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on the updated guidelines on standardised procedures and messaging protocols. This review is part of ESMA’s work to support market participants in preparing for the transition to a T+1 settlement cycle.

The updates are designed to make post trade communication faster, clearer and more consistent across the EU. They reflect the amendments proposed in ESMA’s Final Report on Amendments to the RTS on Settlement Discipline and support firms in meeting tighter timelines further to the transition to T+1.Key changes include:

• reflecting the mandatory use of electronic, standardised communication channels and international messaging standards;
• removing references to non-electronic and non-machine-readable communication methods, such as oral allocations and confirmations, except in cases of temporary technical disruptions.

The revised guidelines should apply from 7 December 2026, in alignment with the expected date of application of the proposed new requirements for allocations and confirmations under the RTS on Settlement Discipline.The consultation comes ahead of the RTS’s formal endorsement by the Commission, to give stakeholders adequate time to submit their feedback and prepare for implementation.ESMA reiterates the importance of preparing for the upcoming regulatory transition to T+1 settlement, which will take effect on 11 October 2027. Market participants are urged to continue their preparations to meet the new requirements ahead of the deadline.

Next steps

Stakeholders are invited to submit feedback by 7 July. ESMA will then consider the feedback received and expects to publish the final report including updated guidelines by October 2026.Source: ESMA