NZX
07/03/2016 09:16
GENERAL
NOT PRICE SENSITIVE
REL: 0916 HRS NZX Limited
GENERAL: NZX: NZX moves to T+2 settlement cycle
NZX is pleased to advise it has successfully transitioned to a shortened T+2
settlement cycle for all trades executed on its cash markets effective today,
Monday 7 March 2016.
Shortening the settlement cycle to trade date plus two business days (T+2)
from trade date plus three business days (T+3) followed consultation with the
broader New Zealand market and
successful testing by NZX market participants and software providers. It also
maintains alignment of settlement cycles in the New Zealand and Australian
capital markets, with the ASX also transitioning to a T+2 settlement cycle
today.
Benefits of a shortened cycle include reducing risk to those involved in the
settlement process and faster settlements of investor transactions.
Technological advances in the industry mean a shortened settlement cycle is
possible and consistent with a wider move around the world from T+3 to T+2.
NZX CEO Tim Bennett commented: "The adoption of a T+2 settlement cycle
ensures NZX matches international best practice, and demonstrates our
continued commitment to transparency and efficiency in New Zealand's capital
markets. I would like to extend our thanks to NZX customers and stakeholders
who have provided valuable input and undertaken considerable operational work
in the transition to T+2."
The move to T+2 required a number of changes to NZX's rules, which came into
effect today. The updated rules can be viewed at:
https://www.nzx.com/regulation/rules
For further information please contact:
Kate McLaughlin
Head of Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in which we operate. To learn more
about NZX, please visit: www.nzxgroup.com
End CA:00278859 For:NZX Type:GENERAL Time:2016-03-07 09:16:44
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