Assocations’ explanatory note on the impact of the US move to T+1 on corporate actions
On 3 September 2024, the European Central Securities Depositories Association (ECSDA) jointly with the Association for Financial Markets in Europe (AFME) and the Federation of European Stock Exchanges (FESE), published a joint explanatory note on the impact of the US move to T+1 on corporate actions processing for multi-listed and multi-traded securities. The key dates for corporate actions of securities issued in North America changed following the settlement cycle reduction to T+1 in May this year.
The Associations identified four scenarios of possible situations faced by European actors in the aftermath of the implementation of T+1 in the other regions. The analysis performed covers all actors within the chain from the Issuer through to the End Investor.