ASX Eyes Upgrade to T+2 Settlement

Sydney Australia
The ASX is consulting on a possible move to T+2 settlement for the first quarter of 2016.

The Australian Securities Exchange (ASX) is considering shortening its settlement cycle for cash market trades in Australia.

The exchange operator is eyeing the introduction of a trade-day-plus-two, or T+2, settlement period to replace its current T+3 cycle.

The shortening of the settlement cycle by one business day could help reduce systemic and counterparty risk for individual investors, participants and the central counterparty (CCP) clearing house, with less regulatory capital required to be held by market participants, better alignment with standardized regional and global settlement practices, improved post-trade operational and process efficiencies, and potential cost savings.

 

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