Securities settlement cycle shortened to T+2 from Dec 10

SINGAPORE (Nov 13): Singapore Exchange (SGX) is shortening the securities settlement cycle to two days (T+2) from T+3 starting Dec 10.

The move will harmonise Singapore’s stock market with that of global markets, including the US, Hong Kong, Australia and the European Union, says SGX.

Moreover, the T+2 settlement cycle will allow a broker-linked balance functionality to be made available to investors. Investors will be able to give their chosen broker visibility over specific securities, while allowing brokers to offer more personalised products and services to their clients.

The change comes under a new securities settlement and depository framework and system introduced by the bourse operator.

Investors can also expect simultaneous settlement of securities and money, and the streamlining of Central Depository (CDP) notifications.

Chew Sutat, executive vice president and head of equities and fixed income of SGX, says, “With the new settlement and depository framework, securities and funds will be made available to investors earlier, while reducing risks across systems and markets. Our new system will also enable us and our securities members to enhance services for the market.”