Euroclear UK & Ireland has published a new web page and frequently asked questions (FAQs) relating to the standard settlement cycle for UK and Irish markets being shortened from three business days after trade (T+3) to two (T+2). The change is in line with the latest text of the draft Regulation on central securities depositories.
The FAQs state that the new settlement cycle will apply to transferable securities traded on or after 6 October 2014 for:
- UK or Irish based recognised investment exchanges;
- multilateral trading facilities; and
- organised trading facilities where trades settle in Euroclear UK & Ireland’s CREST system.
A press release issued by Euroclear UK & Ireland states that over-the-counter (OTC) transactions will be exempt from the T+2 regime, but firms may also choose to settle their OTC activity on the same T+2 basis.
View T+2 settlement implementation in the UK and Ireland, 5 February 2014
View T+2 in the UK and Ireland – Frequently asked questions, 5 February 2014
View UK and Ireland to move to T+2 settlement on 6 October 2014, 3 December 2013
View Coordinating the UK and Irish markets towards a T+2 settlement cycle, 5 February 2014