Thursday February 8 2018

News Source: Global Exchanges

Focus: Other

Type: General




On 1st February 2018, the Depository Trust & Clearing Corporation (DTCC) announced that it expects some Asian Markets to move to a T+2 Settlement cycle in the coming months.

To date, Japan and Thailand have announced plans to move to T+2, Q2 2019 (tentatively) and March 2018 respectively, while Singapore is expected to announce its target date soon.

In Japan, Thailand and Singapore, each had market developments that were more pressing than T+2 and, as a result, were given a higher priority including Japan’s transition to ISO20022 and Singapore’s focus on implementing an API-based clearing system interface. Asia Pacific (APAC) markets have indicated that they will move to a shortened settlement cycle after the U.S. has moved to T+2. On September 2017, the U.S. securities market along with Canada, Mexico, Peru and Argentina shortened their settlement cycles from T+3 to T+2.

Given this development the remaining APAC markets are expected to progress with the shortened settlement initiative in the near term.

If this transition occurs the remaining Asia Pacific markets will become aligned with 90% of the global markets who have already moved to T+2.

The following Asia Pacific markets have already transitioned to T+2:

  • India,
  • South Korea,
  • Taiwan,
  • Hong Kong
  • Australia and
  • New Zealand

While China has a T+0 cycle in place.

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