HKEX hopes white paper will ‘spark discussion’ on shortening stock-trading settlement time
The bourse operator is enhancing its systems to create a clearing and settlement platform that will make the market T+1 ready by end of 2025
It is clear that financial community wants to move more swiftly, trade faster and settle quicker and that competing exchanges around the world were responding to the markets’ needs, Chan wrote in a blog post on Monday.
The paper will be published in the first half of next year.
“We hope [the white paper] will spark discussion with our whole ecosystem on what settlement cycle is needed for Hong Kong,” she said. The exchange “will push forward with enhancing our systems, creating a next-generation clearing and settlement platform which, by the end of 2025, will make the technology underpinning HKEX’s cash market infrastructure T+1 ready.”
Currently it takes two days after the trade day for transactions to be cleared and settled.
“We’re dedicated to create the conditions for success while building our long-term resilience,” Chan said. “We’re channelling the spirit of the Olympic Games to go faster, higher, and stronger – together.”
“Enhancing the vibrancy of our markets is integral to this vision.”
