BRUSSELS (Reuters) - A new standard to settle trades in stocks and corporate bonds more quickly has the power to be transformative for European markets, Valerie Urbain, chief executive of Euroclear said on Thursday.
The new system - known as T+1 - will see U.S. stocks and corporate bonds settle one business day after trading instead of two, starting May 28.
Markets in Canada and Mexico are also adopting the reforms, which have been designed to reduce counterparty risk and improve market liquidity, but T+1 does not yet apply in Europe.
"This has the potential to become transformative for the European markets," Urbain told an audience at the annual general meeting and conference of the International Capital Market Association in Brussels.
She said with the U.S. migration coming soon, Euroclear was ready to support the move in Europe.
(Reporting by Dhara Ranasinghe; writing by Amanda Cooper; editing by Alun John.)
