Currently, settlement takes place three days after a trade (T+3) and from 6 October all trades will be settled on a T+2 basis, or two days after a trade. This migration to a shorter settlement cycle will apply to all securities traded on its two markets, the BdL market and the Euro MTF market.

The shortening of the settlement period is in the context of the Central Securities Depositary European Regulation (CSDR). This regulation will take effect in January 2015 and aims to harmonise EU securities settlement cycles.

The Head of Listing, Issuers and Markets at the Luxembourg Stock Exchange, Hubert Grignon Dumoulin, said, “A harmonised T+2 settlement cycle throughout the EU will reduce uncertainty and risks and we are pleased to be able to carry out this migration in advance of the CSDR deadline.”