AUSTRALIA: Transition to T+2 Settlement for Cash Equities – Update

Wednesday May 27 2015

ASX will transition to a T+2 Settlement cycle for cash equities in March 2016, with a current target date of 7th March 2016.

With strong industry endorsement following broad market consultation in 2014, ASX will implement a T+2 settlement cycle in March 2016. The current target date for the transition is Monday 7 March 2016. This date will be confirmed in early 2016. Shortening the settlement period by one business day creates capital and margin savings for industry, and a faster settlement of transactions for investors. It also lowers systemic risk for the market as a whole by reducing counterparty risk for individual investors, participants and the clearing house.

ASX’s adoption of T+2 Settlement will keep Australia aligned with leading settlement practices around the world, including Hong Kong and Europe, where many countries adopted T+2 Settlement in October 2014. The US is also considering a move and New Zealand Stock Exchange released a consultation paper on T+2 Settlement in November 2014, and further information in April 2015 proposing a similar implementation date to Australia.

Click on the link above for further details.