Recital 1

(1)Article 5(2) of Regulation (EU) No 909/2014 of the European Parliament and of the Council ⁴ regulates the settlement period for most transactions in transferable securities executed on trading venues. With certain exceptions, the intended settlement date for such transactions is to be no later than on the second business day after the trading takes place. Such a period is referred to as the ‘settlement cycle’. The requirement for settlement to take place at the latest on the second business day after the trading takes place is referred to as the ‘T+2 settlement cycle’, or, simply, as ‘T+2’.