A number of operators of European securities markets have announced that they will implement the migration to T+2 from T+3 for cash transactions and to T+1 from T+2 for repo transactions.
CSD regulations state that the migration should not apply to transactions that are privately negotiated and executed on a trading venue, or transactions that are executed bilaterally but are reported to a trading venue.
Transactions on the International Capital Market Association (ICMA) market are out of the scope of CSD regulations, as they are transactions in international securities.
Concordantly ICMA will change the standard settlement cycle from T+3 to T+2, unless otherwise agreed, to allow for the orderly trading of all fixed income securities traded under ICMA rules.
All of the proposed changes are to take effect as of 6 October 2014.
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