meta_id 3185175

On May 26, 2026, the European Securities and Markets Authority (ESMA) launched a consultation on updated guidelines for standardised procedures and messaging protocols to support the transition to T+1 settlement. The consultation addresses post-trade communication requirements under the Central Securities Depositories Regulation (CSDR) and reflects amendments proposed in ESMA's Final Report on Amendments to the Regulation (EU) 2014/909 on Settlement Discipline (RTS on Settlement Discipline). The revised guidelines mandate the use of electronic, standardised communication channels and international messaging standards for allocations and confirmations. ESMA is removing references to non-electronic and non-machine-readable communication methods, including oral allocations and confirmations, except in cases of temporary technical disruptions. These changes aim to make post-trade communication faster, clearer, and more consistent across the European Union, enabling market participants to meet tighter timelines under the T+1 settlement framework. The revised guidelines are scheduled to apply from December 7, 2026, aligning with the expected application date of new requirements under the RTS on Settlement Discipline. This timing precedes the formal endorsement of the RTS by the European Commission, providing stakeholders adequate time to submit feedback and prepare for implementation. ESMA emphasises the importance of preparing for the broader regulatory transition to T+1 settlement, which takes effect on October 11, 2027. Stakeholders, including investment firms, credit institutions, and central securities depositories, should submit feedback by July 7, 2026. ESMA will consider responses and expects to publish the final report with updated guidelines by October 2026.