DTCC Consulting’s virtual event, “T+1 in Europe: De-Risking the Transition,” brought together a panel of experts including Emma Miles from Euroclear, Paul Fulton from Citi, Matt Johnson from DTCC and Buka Mulwila from DTCC Consulting.
With clients from across the buy side, sell side, and asset servicing community attending, it was an opportunity to take stock of where the industry stands on T+1 in Europe. The conversation was candid and the data from multiple interactive polls conducted during the event was illuminating – and the overarching message was one we should all consider: the hardest part of this transition actually isn't inside your firm.
Here's what we heard during some of the client “pulse polls” at the event and what the industry needs to do next to move forward.
Europe Is in a Category of Its Own
When we asked participants to benchmark Europe's T+1 transition against other markets that have moved to T+1 – US, Canada, India – roughly 70% said it is somewhat or significantly more complex. Only a small minority viewed it as comparable or simpler.
When the US moved to T+1, it was operating on a single CSD with a broadly unified settlement framework. At this point, we all recognise that Europe's settlement ecosystem is structurally different with multiple central securities depositories, cross-border flows governed by CSDR, fragmented FMI infrastructure, and a patchwork of market conventions that don't neatly align.
The perception that this move is going to be more complex isn't pessimism – it's an accurate read and reflection of the landscape.
The Dominant Concern: Dependencies
Firms aren't worried about technology, they're more worried about each other – and to me, this is one of the findings that stood out most clearly. When asked to identify their biggest implementation challenge, clients ranked managing dependencies across FMIs and counterparties as the top concern – ahead of testing, data and automation uplift, or internal change capacity.
When asked about their biggest operational risk, third-party and vendor dependencies ranked first by a wide margin. What this tells us is that firms feel broadly capable of managing their own migration to T+1, but they are genuinely uncertain about what their counterparties, custodians, and infrastructure providers will be doing, and when. A firm can be 100% comfortable for go-live in October 2027 and still fail to settle on time if the entity on the other side of the transaction isn't similarly ready. That uncertainty is itself a risk.
Clients want greater clarity on three things: vendor readiness timelines, shared operating assumptions across the ecosystem, and stronger market coordination on the specifics of how T+1 will function in practice. These are not unreasonable asks, and they should inform how industry bodies and infrastructure providers communicate in the months ahead.
Most Firms Are Still in Assessment Mode
We also asked participants to characterise their current state of readiness. Nearly half said they are still at the stage of assessing requirements and internal readiness, and only a small minority described themselves as fully prepared or in late-stage implementation.
This is not alarming – we appreciate the honest assessment from clients on the webinar, because it reflects where we actually are in the cycle. But it is also a clear signal that the window to shape the readiness journey remains open.
There is opportunity right now to influence how firms prioritise their workstreams, map their dependencies, and benchmark their progress against the broader market.
De-risking the Transition and Where We Can Help
Critically, T+1 readiness extends well beyond technical testing. What clients are grappling with are questions of operating model, governance, and coordination – and those take longer to resolve than just a user-acceptance testing cycle. This is where Consulting is helping firms navigate the complexities of transitioning to T+1 across diverse European markets, to build for what’s next:
The bottom line from our webinar: clients see Europe T+1 as complex, interconnected, and dependency-driven – and most know they are not there yet. The action, however, is how the market can convert that awareness into coordinated action before the clock runs out.
We have published some clips and the replay online in case you missed it. If you would like to discuss your firm's readiness, or what T+1 means for your operating model, dependencies or priorities – and would value a sounding board – please don’t hesitate to get in touch.