NZX
12/11/2014 14:57
GENERAL
REL: 1457 HRS NZX Limited
GENERAL: NZX: NZX consults on proposal to shorten settlement cycle to T+2
NZX is proposing to move to a shortened trading settlement cycle from the
current trade date plus three business days settlement (T+3) to a trade date
plus two business days settlement (T+2) for cash market trades on its
markets.
Key benefits of the proposal are the reduction of risk to those involved in
the settlement process and maintaining alignment of settlement cycles in New
Zealand and Australian capital markets. Technological changes in the industry
mean that a shortened settlement cycle is possible and is consistent with a
wider move around the world from T+3 to T+2.
Due to the importance of the settlement cycle to the broader market, NZX
considers it appropriate to consult on the proposed change, to better
understand how the change will impact market participants.
The reasons for the proposed change, the key impacts resulting from the
change and the proposed timetable for implementation of the change, are set
out in NZX's consultation paper. NZX is seeking feedback on the proposal. The
consultation paper and information about making a submission can be viewed
at:
https://www.nzx.com/market-regulation/rules-consultation
Submissions should be sent to [email protected]
The closing date for submissions is 5.00pm 22 December 2014.
For further information please contact:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
E: [email protected]
End CA:00257567 For:NZX Type:GENERAL Time:2014-11-12 14:57:51
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