(2)Longer settlement periods for transactions in transferable securities increase the risks to the transaction parties and reduce the opportunities for buyers and sellers to enter into other transactions. For those reasons, many third-country jurisdictions have moved, are in the process of moving, or plan to move to a settlement period of one business day after the trading takes place (‘T+1’). The global shift to shorter settlement periods is, however, creating misalignments between Union and global financial markets. Those misalignments will further increase when more countries move to T+1 settlement, thereby increasing the costs to Union market participants caused by such misalignments. Furthermore, some capital markets have already shortened the settlement cycle for certain types of transactions to T+0. In the Union, central securities depositories already settle a non-negligible number of transactions on a T+0 basis.