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As per the regulation, if a transaction is executed on a MiFID venue (Regulated Market or MTF), the settlement date should be T+2 (or less), with exceptions for privately negotiated trades, trades negotiated privately but executed on a trading venue, or the first transaction where transferable securities are subject to initial recording in book entry form.
For off-venue (OTC) transactions, AFME recommends the use of T+2 as a default best practice for all transactions where possible. For transactions in XS ISINs, which are predominantly Eurobonds, AFME has been advised that a static data feed from Thomson Reuters or Bloomberg will automatically default to a settlement date of T+2 for most instruments, following the logic described below. This can be overridden if both parties agree.
This may impact XS securities traded in third countries where European Regulation is not expected to have an effect. Any refinements will be discussed and, where needed, remediated post 6th October migration in cooperation with venues, vendors and market participants.