During a discussion hosted by the European Securities and Markets Authority (ESMA) and attended by EU officials, European Commission policy officer Sebastijan Hrovatin said that the fourth quarter of 2027 was a realistic timeframe for the shift to happen. He added that any date “put on the table” by the commission will reflect what the EU executive body thinks is “realistic and acceptable”.
ESMA also confirmed it is looking at shortening the settlement cycle in either the last quarter of 2027, or the first or fourth quarters of 2028, to fit around corporate annual meetings and minimize potential disruptions.
Rodrigo Buenaventura, chair of the Spanish Securities Market Commission and of ESMA’s markets standing committee, who was moderating the discussion, said that a consensus had emerged that the fourth quarter of 2027 is “feasible” and there are “no roadblocks” to implementation.
Jesus Benito, head of domestic custody and trade repository at SIX, said: “Q4 2027 is achievable if regulators, market participants and market infrastructures work together. The agreement from the panelists that it is preferential to have unity between the EU, Switzerland and UK on the timing for this move is very positive.”