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EFAMA members applaud the statement released today by the European Commission, ESMA and the ECB on shortening the standard securities settlement cycle. EFAMA agrees that the setting up of a governance structure is an urgent and necessary step toward delivering a final roadmap for Europe’s transition.
Furthermore, EFAMA wholeheartedly agrees with the underlying rationale for this move. Misalignment with a key market like the US generates ongoing costs, ultimately borne by the end-investor. Over time, this will also harm the competitiveness of our products, vis-a-vis other alternatives, particularly among global investors.
The statement refers to the interconnectedness of EU markets with other jurisdictions in Europe, and the need to coordinate the timing of the move. It goes on to point out the need to accelerate the technical work to facilitate such a coordination. EFAMA members fully subscribe to this view, and believe that end-2027, as currently indicated for the UK, is a feasible date for a broader European transition, including the UK and Switzerland.(1)
EFAMA and its members stand ready to support the work of the new group that will be shortly established.