Change in Settlement timing. T3 to T2

[777]

Just in case you missed it

What is the change?
The NZX and ASX markets intend to reduce their current settlement period of trade date plus three business days (T+3) to a settlement period of trade date plus two business days (T+2) for trades on their markets.

Why is the change being made?
Shortening of the settlement period on NZX and ASX markets will ensure NZX and ASX match international best practice in this area and align with each other.

When is the change being made?
The new T+2 settlement period will apply to transactions entered into on or after Monday 7th March 2016.

What does this mean for you?
Buying Securities
If you buy securities on or after Monday 7th March 2016, payment must be made in cleared funds within two business days after the trade takes place.

Selling Securities
If you sell securities on or after Monday 7th March 2016, payment will be made to you overnight on the second business day after the trade has taken place.

[bull....]

did you also notice on asb that comsec can now trade against you?

[blackcap]

did you also notice on asb that comsec can now trade against you?

Is that really an issue though? Direct Broking back in the day also said on their contract notes that they could be the other party to the trade... no real biggie or am I missing something?

[bull....]

Is that really an issue though? Direct Broking back in the day also said on their contract notes that they could be the other party to the trade... no real biggie or am I missing something?

no biggee, just worth noting that it may not trade thru the market but may only be traded on there books where they will clip the commission and the spread?

[blackcap]

no biggee, just worth noting that it may not trade thru the market but may only be traded on there books where they will clip the commission and the spread?

Possible, I guess you need to stipulate a limit on your order. If you want to say sell 1000 shares at a limit of $2.00 and the market has buyers at $2.10 then there is no way the broker can do a cross for these shares at $2.05. They still have to give you the best price available. If they can offer that.... then they can be the other party...

[bull....]

Possible, I guess you need to stipulate a limit on your order. If you want to say sell 1000 shares at a limit of $2.00 and the market has buyers at $2.10 then there is no way the broker can do a cross for these shares at $2.05. They still have to give you the best price available. If they can offer that.... then they can be the other party...

unless they are a market maker as well in the stock then they will provide a price

[blackcap]

unless they are a market maker as well in the stock then they will provide a price

Correct, in which case you get something instead of nothing... so still better for you the client....

[bull....]

the only other point of interest is if you are a trader or short term investor ( if you are a long term investor it is irrelevant ) the broker makes the profit if unfortunately you had to sell at a loss so the broker makes commission + spread + your loss lol brings data matching to mind rank your traders to give the probability of winning or losing against your client smart business really.