T+2 settlement cycle transition in Europe runs smooth

Shortening the settlement cycle in Europe by one trading day has not caused major upset, say central securities depositories, clearing houses, custodians and fund managers

A global change in financial markets occurred in October but frustratingly, for journalists, at least, there is little to report, no crisis news story, not even mutterings of discontent or minor inconvenience.

On October 6, the standard settlement period for equities traded in Europe was shortened from T+3 – the trade date plus three business days – to T+2. Everyone now has one day less for margin calls, one day less to recall stock from loan, one day less to sort out foreign exchange trades. But