Deferred Settlement Service (SRD)

The Deferred Settlement Service (SRD) offers French market participants the flexibility to postpone the settlement of eligible trades in equities listed on Euronext Paris beyond the standard settlement cycle. This service is designed specifically for French investors, supporting trading strategies that require extended settlement periods and providing greater control over cash flow and portfolio management. By enabling deferred settlement, Euronext helps firms optimise their trading operations and respond more effectively to market opportunities.

How the Deferred Settlement Service works

The investor identifies an order as SRD when passing it to his/her financial intermediary. The order is then immediately routed to the Regulated Market, where it is executed and settled in a standard two-day time period.

The intermediary finances the investor’s position until the end of the month, when the investor receives the balance of positions in his/her account. The leverage is the result of the cover ratio the investor has to put toward his position at the time of execution.

Origin and evolution of the Deferred Settlement Service in France

The Deferred Settlement Service, known in France as Service de Règlement Différé (SRD), has its roots in the unique requirements of the French equity market. Introduced to facilitate more dynamic trading and investment strategies, the SRD was developed to allow investors to defer the settlement of certain trades until a specified monthly date. Over time, the service has evolved to incorporate enhanced risk management and regulatory standards, maintaining its relevance and value for French investors seeking greater flexibility in their trading activities.

Optimise trading strategies with extended settlement periods

With the Euronext Deferred Settlement Service, traders can take advantage of extended settlement dates to align their trading activities with investment strategies and funding requirements. This flexibility is particularly valuable for institutional investors managing large or complex transactions, as it allows them to better coordinate trade execution and settlement. The service supports a range of asset classes, ensuring that participants can benefit from deferred settlement across their portfolios.

Regulatory compliance and transparency with Euronext Deferred Settlement Service

Compliance and transparency are central to the Euronext Deferred Settlement Service. The platform is designed to meet regulatory standards, with comprehensive reporting and audit trails for all deferred trades. This ensures that market participants can demonstrate compliance with relevant regulations and maintain clear records for internal and external review. By combining flexibility with strong governance, Euronext delivers a deferred settlement solution that supports both operational needs and regulatory obligations.

Eligible Securities

Standard Deferred Settlement Service

Securities eligible for the standard Deferred Settlement Service must satisfy the following criterion:

• Market capitalization of at least €1 billion
• Assessed as of 1 December each year.*

_{*If 1 December is a non-trading day, the previous trading day's data is used.} 

Long-only' Deferred Settlement Service

Securities eligible for the 'long-only' Deferred Settlement Service must satisfy the following criterion:

• Daily trading amounting to at least €100,000.
• Evaluated over a rolling year-over-year period as of 1 December.

These securities cannot be traded on the central securities borrowing-lending market.

All ETFs admitted to listing and trading on Euronext Paris are eligible to the SRD long only.

List of SRD

Find a list of eligible shares on our client portal Connect.

Connect