Sibos 2026: BNP Paribas' Marie-France Dessertenne on the European T+1 Transition
By Ali Paterson · 6 November 2026
In brief: BNP Paribas highlights the massive scale of the European T+1 transition scheduled for October 2027. The shift requires significant process rethinking and automation to manage 32 markets and 14 currencies.
| Event | Sibos 2026 |
|---|---|
| Key Speaker | Marie-France Dessertenne, BNP Paribas |
| Organization | BNP Paribas, BNP Paribas - Securities Services |
| Primary Market | Europe |
Quick Summary
The financial industry is currently navigating a period of rapid technological advancement, with digital transformation and artificial intelligence at the forefront of the conversation. Marie-France Dessertenne of BNP Paribas explains at Sibos 2026 how the bank is engaging as a tech forward global custodian to support clients through major industry shifts, most notably the upcoming transition to T+1 settlement in Europe.
What is the scale of the European T+1 transition?
The move to a T+1 settlement cycle is described as a transformative moment for the industry, serving as a primary step toward the Savings Investment Union and making European capital markets more attractive to foreign investors. However, the scope of the project is significantly larger than previous transitions. Marie-France Dessertenne notes that the European transition involves a "Big Bang" approach scheduled for 11 October 2027. This transition will cover:
- The United Kingdom initiative.
- The European Union initiative.
- The Swiss initiative.
In total, 32 markets will transition simultaneously, forcing firms to rethink their existing processes and enhance their data flows to remain sustainable within a compressed settlement timeframe.
How does the European transition differ from the US experience?
While the North American transition to T+1 in May 2024 was successful and provided a useful blueprint, BNP Paribas emphasises that it cannot be a simple copy and paste for Europe. The US market is characterized by having one primary regulator, one central counterparty (CCP), one stock exchange, and a single currency. This made the American transition significantly leaner than what is expected in Europe.
The European landscape is highly fragmented, dealing with 32 markets and 14 different currencies. Despite these differences, there are key lessons to be learned from the US experience, such as the importance of early regulator involvement and the necessity of an extensive testing period. BNP Paribas - Securities Services highlights that the US saw a nine month testing window that included exception processing and holiday periods to ensure all players were ready for the live environment.
What are the primary risks associated with the shift to T+1?
One of the most significant challenges involves funding and liquidity management. With the settlement cycle shortened by a day, there is less time to ensure transactions are successfully funded. This is particularly difficult in Europe due to its fragmented nature. Market participants have one day less to move funding or may even need to pre-fund transactions depending on the currency involved.
Performing foreign exchange (FX) movements within the narrow window of CLS on the trade date heightens the risk of not having cash available at the correct moment. Marie-France Dessertenne warns that any settlement fail in Europe will trigger a penalty, a situation that all market participants are keen to avoid. This makes the accuracy of cash management and trade processing more critical than ever before.
Why is automation essential for this transition?
Lessons from the US transition revealed that firms which underestimated the need for automation faced significant operational burdens. Some players saw an increase in back office operation costs of up to 20 percent within the first year of T+1. To avoid these rising costs and the risk of penalties, BNP Paribas advocates for increased automation and the adoption of new technological solutions.
The pace of transformation in the business is accelerating, and BNP Paribas - Securities Services is focused on providing solutions that allow clients to keep pace with these changes. Collaboration between global custodians and their clients is viewed as the only way to successfully navigate the inception of this new era in capital markets.
FF NEWS TAKE:
The transition to T+1 in Europe is not merely a technical adjustment but a fundamental restructuring of how 32 distinct markets interact. By highlighting the 20 percent cost increase seen by non-automated firms in the US, BNP Paribas makes a compelling case for immediate investment in settlement infrastructure. As the 2027 deadline approaches, the role of global custodians will shift from simple service provision to essential consultancy, helping firms manage the complex intersection of 14 currencies and strict penalty regimes.
Frequently asked questions
When is the European T+1 transition scheduled to take place?
The transition is scheduled for a "Big Bang" implementation on 11 October 2027.
How many markets and currencies are involved in the European shift?
The transition covers 32 markets across the UK, Switzerland, and the EU, involving 14 different currencies.
What happened to back office costs for US firms that did not automate?
According to BNP Paribas, some players who did not prioritise automation saw back office operation costs increase by up to 20 percent in the first year.
Part of our Sibos 2026 coverage.