Subscribe to our newsletter

ASX goes live with T+2 settlement period

ASX goes live with T+2 settlement period

Taylee Lewis
— 1 minute read

The ASX T+2 settlement period commenced today, meaning that share market trades must now settle two days after the trading day.

The T+2 settlement regime reduces the settlement period from a T+3 cycle, the ASX said.

“The move to T+2 settlement is an important milestone in improving the efficiency and competitiveness of the Australian market, and delivers genuine benefits for participants and investors,” said ASX deputy chief executive Peter Hiom.

According to the ASX, T+2 lowers systematic risk for the market by reducing counter-party risk for investors, participants and clearing houses.

Stockbrokers Association of Australia chief executive Andrew Green has supported the move to T+2.

“T+2 gives Australia a significant competitive advantage at a time when global investors are yearning for confidence, transparency and certainty,” Mr Green said.

Moreover, Australian Custodial Services Association (ACSA) chair Mark Wooton reinforced that the move is positive and "puts Australian in line with a number of other global markets”.

T+2 settlement already operates in Europe and Hong Kong, with the US and Canada having proposed moving to T+2 in September 2017.

The Australian custody industry began testing the regime in August 2015, with many participants already having tested their readiness for the system. 

Read more:

Zurich Australia to acquire Macquarie Life

ANZ and ASIC headed for the courts

Five reasons not to be gloomy: AMP Capital

Skills shortage set to drive finance salaries higher

Labor cautiously backs life insurance reforms

 

ASX goes live with T+2 settlement period
investordaily image
ID logo

related articles

promoted stories