The European Repo Council of the International Capital Markets Association (ICMA) has published a report which sets out initial feedback from ICMA members and operations working groups on the transition to T+2 for the European fixed income markets.

The report notes that the transition has been largely successful with few issues which the IMCA will work on with other bodies and its members.

Interestingly, the report notes that there still remains an edge population of non-European currency denominated international traded securities that settle both on in-scope and out-of-scope central securities depositories, and where T+3 may remain the most liquid, and therefore practical, default settlement date. These currently include US Reg-S issues, non-European Emerging Market bonds, and a number of Asian-Pacific securities. The ICMA states that it will continue to work closely with a number of bodies to help resolve these issues and to achieve a consensus regarding best practice.

View ICMA ERC report on the successful migration of the European bond markets to T+2, 14 October 2014