Update on T+3: Reduced settlement cycle for equity market to be launched soon

South Africa aims to attract local and foreign investment and maintain global best practice with regard to settlement time. That is what the JSE’s T+3 project aims to achieve and deliver.

 

The JSE’s move to implement a T+3 settlement cycle is set for 11 July 2016. Final implementation is the third phase of the project which is a regulatory obligation for the exchange. The third phase will be enabled by changes to the JSE’s equity clearing solution system.

 

The move to T+3 will bring numerous benefits to the market such as:

 

  • Creating harmonisation across global markets
  • Aligning the South African market to global standards
  • Boosting the operational efficiency and credibility of the market
  • Contributing to the management of systemic risk by reducing the value of unsettled trades
  • Improving liquidity in the market
  • T+3 is a significant milestone for South Africa. Strate has worked with the JSE and the market participants to ensure that the launch in July takes place seamlessly.

 

To facilitate the move, Strate has made process and system changes, which cover post-trade and post-settlement.

 

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