CySEC issues circular E780 regarding the T+1 securities settlement transition

The Cyprus Securities and Exchange Commission (CySEC) has issued Circular E780 to prepare market entities for the transition to a T+1 securities settlement cycle. This transition requires that securities transactions be settled one business day after execution, shifting from current standards. CySEC mandates that all relevant entities, including central securities depositories, central counterparties, custodians, intermediaries, asset managers, and investors, prepare for these changes. The requirements apply to transferable securities traded on venues under Article 5 of the EU Central Securities Depositories Regulation, as amended by Regulation 2025/2075. Affected parties are urged to participate in two readiness surveys organized by National Competent Authorities and the EU T+1 Industry Committee. These surveys will remain open until June 9. The stated objectives of this regulatory move include strengthening market resilience, reducing counterparty and operational risks, and aligning domestic practices with international standards.