The European Securities and Markets Authority (ESMA), the EU's financial market regulator, today issued a call for evidence (CfE) on the issue of shortening settlement cycles.。

The European Securities Market Authority will receive responses by December 15, 2023.。

The evidence solicitation exercise will help ESMA assess the costs and benefits of a possible shortened settlement cycle in the European Union (EU); and determine whether any regulatory action is needed to smooth out the impact on EU market participants of plans by other jurisdictions such as the US to shorten the settlement cycle to T + 1。

ESMA seeks input from all stakeholders involved in financial markets, including quantitative evidence, not just those involved in financial market infrastructure。

In particular, ESMA invites market infrastructures (CSDs, CCPs, trading venues), their members and participants, other investment firms, issuers, fund managers, retail and wholesale investors and their representatives to provide detailed feedback on the issues raised。

The regulator intends to submit and publish a feedback report and its main findings to the European Commission (EC) in 2024.。

The European Securities and Monetary Authority may submit an early report to the European Commission in advance, identifying possible regulatory actions to deal with the impact on EU market participants after the US change to T + 1.。