Europe’s post-trade environment is evolving rapidly, with Euronext at the forefront of this transformation. As highlighted in the Draghi Report, fragmented national systems continue to slow cross-border activity and limit scale. Real progress depends on coordinated reforms across the entire post-trade chain.
Choice of settlement for equities and exchange-traded products (ETPs)
Euronext already operates five central securities depositories (CSDs) in Denmark, Italy, Norway, Portugal and Greece. The next major step comes in September 2026, when clients trading equities and exchange-traded products (ETPs) in Euronext Amsterdam, Brussels and Paris will, for the first time, be able to choose between Euronext Securities and alternative CSDs for settlement. This supports Euronext’s commitment to a more competitive and consolidated post-trade infrastructure, aligned with the objectives of the Savings and Investment Union (SIU) promoted by the European Commission.
Overcoming fragmentation
Historically, each Member State has operated its own CSD, with unique standards and systems. This patchwork has created friction in cross-border settlement. The launch of TARGET2-Securities (T2S) by the European Central Bank in 2015 marked a significant step forward, modernising European securities settlement with a unified platform and simplifying cross-border transactions. However, inconsistent use of T2S continues to hinder full harmonisation.
The Market Integration Package (MIP)
The Market Integration Package (MIP), published by the European Commission in December 2025, aims to build on T2S progress by mandating connectivity to T2S for all relevant market infrastructures and confirming the right for market participants to designate any regulated CSD for settlement. To achieve a truly pan-European settlement infrastructure, the following are essential:
- Mandatory usage of T2S, not just connectivity, to ensure transactions are settled through the platform in practice.
- Expansion of T2S to support settlement in all euro and major non-euro currencies, or standardised, harmonised interactions with external T2S-approved non-euro payment systems.
- Clear and consistent operational and supervisory requirements for CSD designation, potentially defined by ESMA, to ensure resilience and coherence.
Clearing, interoperability and risk management
The MIP also proposes changes to access rules between trading venues and central counterparties (CCPs), aiming to facilitate more interoperable clearing arrangements for equities across the EU and enhance liquidity, efficiency and cross-border integration. However, interoperability between CCPs introduces complexity and potential channels for financial distress. Robust risk-management safeguards must guide any expansion of CCP connectivity, and unified supervision is essential. Interoperable links should only be considered with entities under the same supervisory authority to avoid regulatory blind spots and vulnerabilities.
When considering interoperability, the following principles should apply:
- Interoperability should be selective and based on clear economic and operational rationale.
- The number of interoperable links should be limited to a small number of CCPs where arrangements are both commercially sound and operationally resilient.
- Counterparties must meet comparable prudential and supervisory standards to ensure stability.
Exclusion of exchange-traded derivatives (ETDs)
Within this broader context, the Commission’s decision to exclude ETDs from the scope of the new access rules is appropriate and necessary. ETD markets are structurally distinct from cash markets, and the close alignment between trading venue and CCP is foundational to effective risk management. Mandated access or forced interoperability in this segment would risk weakening well-established safeguards and diluting the resilience of integrated ETD market structures. Preserving the exclusion of ETDs is therefore essential to maintaining both market integrity and financial stability in this critical part of the European post-trade ecosystem.
Key benefits of a harmonised post-trade ecosystem
A more integrated post-trade environment will deliver several benefits for European capital markets:
- Enhanced efficiency and reduced friction in cross-border settlement.
- Greater competition and choice for market participants.
- Improved resilience and stability through harmonised risk management and supervisory standards.
Building a harmonised post-trade ecosystem
Strengthening Europe’s post-trade architecture requires more than incremental adjustments. It demands a coherent approach to integration, risk management and supervisory alignment. The MIP lays a strong foundation through T2S expansion, clearer CSD designation rules and calibrated CCP access provisions. Success will depend on robust implementation, ensuring a harmonised, resilient and efficient post-trade ecosystem that supports the growth of European capital markets.