Typically, it takes two days from the time of a stock transaction for the trade to be fully settled. This is due to the so-called trade settlement process, which ensures a smooth exchange between the parties involved.

However, the T+2 standard currently in place in Europe and Switzerland is set to be reduced to T+1, as is already the case in the U.S. and India.

The Swiss Securities Post-Trade Council (swissSPTC) has proposed October 2027 as the date for the transition in Switzerland and Liechtenstein, according to a statement by SIX, the Swiss stock exchange operator, on Thursday. The proposal has been confirmed by the State Secretariat for International Finance (SIF), and SIX plans to initiate the necessary adjustments to its trading regulations.

In Tandem with the EU and UK

The swissSPTC expects that the EU and the United Kingdom will also implement the transition by this date. A simultaneous migration is in the interest of the affected markets and their users.

Should the introduction in one of these markets be delayed, domestic markets will aim to align their schedule with that of the «first mover,» the statement adds.

Benefits of Faster Settlement

The faster settlement process is credited with several advantages. The shorter time frame reduces risk, as the period during which market conditions can change is minimized. Counterparty risk is also lower, and capital becomes available more quickly. Additionally, the transition will force the industry to modernize and harmonize its infrastructure.