SEPTEMBER 2019, LONDON

Singapore Exchange (SGX) will be launching a new securities settlement and depository framework and system on 10 December 2018, enabling a shorter securities settlement cycle of two days (T+2) and simultaneous settlement of money and securities.

SGX launches new securities settlement and depository system, T+2 securities settlement cycle from 10 December

November 13, 2018

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Singapore Exchange (SGX) will be launching a new securities settlement and depository framework and system on 10 December 2018, enabling a shorter securities settlement cycle of two days (T+2) and simultaneous settlement of money and securities.

Come 10 December, we will align our securities clearing and settlement processes with global standards, strengthening Singapore’s position as an international financial centre. 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,” said Chew Sutat, Executive Vice President and Head of Equities and Fixed Income, SGX.

Moving from a T+3 to a T+2 settlement cycle will harmonise Singapore’s stock market with that of global markets including Australia, the European Union, Hong Kong and the US. Other improvements that investors can expect include the simultaneous settlement of securities and money, and the streamlining of Central Depository Pte Ltd (CDP) notifications.

In addition, the new settlement and depository system will allow a broker-linked balance functionality to be made available to investors. This functionality allows investors to give their chosen brokers visibility over specific securities. This will provide brokers the ability to offer more personalised products and services to their clients.

Details of the earlier public consultation can be found here, while feedback and SGX’s responses are found here. A list of frequently-asked questions is published here.


About Singapore Exchange

Singapore Exchange (SGX) is Asia’s leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards. As Asia’s most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and over 80% of listed bonds originating outside of Singapore.

SGX is the world’s most international offshore market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products. Headquartered in AAA-rated Singapore, SGX is globally recognised for its risk management and clearing capabilities. For more information, please visit www.sgx.com.

Source:SGX