macduffy
23-02-2016, 07:50 PM
Most of us will be aware that settlement of transactions is to change from T+3 to T+2 shortly. This from my broker today giving the relevant details:
"We are writing to inform you that securities exchanges in Australia and New Zealand will be transitioning from a trade date plus three business days (T+3) settlement cycle to a trade date plus two business days (T+2) settlement cycle. The change from T+3 to T+2 is scheduled to take place on 7 March 2016, and the trades executed on or after this date will settle on a T+2 basis.
The reduction in the settlement cycle means there will be one less business day to deliver and / or pay for securities listed on NZX and ASX, and as such it’s important that you are able to meet your settlement obligations for listed securities on T+2. Payment will be required one day earlier than the current settlement timeline. If this timeline is likely to cause you issues in terms of prompt payment please contact your adviser to discuss."
"We are writing to inform you that securities exchanges in Australia and New Zealand will be transitioning from a trade date plus three business days (T+3) settlement cycle to a trade date plus two business days (T+2) settlement cycle. The change from T+3 to T+2 is scheduled to take place on 7 March 2016, and the trades executed on or after this date will settle on a T+2 basis.
The reduction in the settlement cycle means there will be one less business day to deliver and / or pay for securities listed on NZX and ASX, and as such it’s important that you are able to meet your settlement obligations for listed securities on T+2. Payment will be required one day earlier than the current settlement timeline. If this timeline is likely to cause you issues in terms of prompt payment please contact your adviser to discuss."