Europe’s T+1 Shift Projected to Be Costlier Than US Transition

Europe’s transition to a faster settlement regime will likely be more expensive than in the US, as the region’s complex market infrastructure requires larger teams to steer the process.

The shift to what’s known as T+1 is estimated to cost $36 million for large European custodians, according to a report by Firebrand Research. That compares to a $13 million average cost similar firms incurred around the North American transition, it said.

The European Union is expected to move to a one-day securities settlement regime by October 2027, with the UK and Switzerland moving in tandem. The US, Canada and others ...