Intended settlement date · Concepts · European Finance Observatory

Roles that need it

T+1 (Settlement cycle)T+1 is a settlement cycle in which securities trades settle one business day after the trade date. Regulation (EU) 2025/2075 moves trades on EU trading venues from T+2 to T+1 from 11 October 2027; the United States, Canada and Mexico moved in May 2024, and the UK and Switzerland target the same date as the EU.
Settlement failA settlement fail is a transaction that does not settle on its intended settlement date, because securities or cash are missing or the instructions do not match. Under the Central Securities Depositories Regulation (CSDR), fails in EU CSDs trigger daily cash penalties and reporting, and may lead to a buy-in.
DVP (Delivery versus payment)Delivery versus payment (DVP) is a settlement mechanism that links the transfer of securities to the transfer of cash, so that delivery happens if and only if payment happens. It removes principal risk in securities settlement and is the standard for trades settled in central securities depositories and TARGET2-Securities (T2S).
Settlement matchingSettlement matching is the comparison of the buyer's and seller's settlement instructions by the settlement system before settlement, field by field (securities, quantity, amount, dates, accounts). Only matched instructions can settle. The Central Securities Depositories Regulation (CSDR) requires CSDs to offer matching tools and tolerances for small cash differences.

Updated 31 Oct 2026.