28 May 2018
Visit response.ncr.com

Australian fixed income markets to shift to T+2 settlement

19 August 2015  |  4677 views  |  1 Australian Flag

The $1 trillion Australian bond and fixed income markets are to move to a T+2 settlement timeframe from early next year, complementing a similar constriction in the post-trade lifecycle in cash equities mandated by the Australian Stock Exchange.

The Australian Financial Markets Association (Afma) says the change, to be implemented in March 2016, will reduce counterparty and systemic risk and bring Australia in line with key trading partner economies.

Michael Go, head of markets at Afma says industry consultation showed that the implementation would be reasonably straightforward as conventions, systems and processes currently cater for negotiated settlement cycles for the relevant market participants.

"We’re very confident that the timeframe we have set together as an industry is a sensible one," he says. “Any institution dealing in Australian fixed income products will need to talk to their counterparts to ensure their systems and processes cater for T+2. Given much of the rest of the world is already on this cycle, or moving to it, it places the Australian market in a strong position.”

Australia is the latest in a succession of global marketplaces to reduce settlement timeframes. European markets made the move last year, while the US has committed to a late-2017 deadline to make the shift.
KeywordsDEPOSITORIES

Comments: (1)

A Finextra member
A Finextra member 20 August, 2015, 00:42

A good move. Standardisation and facilitation of broader settlement times will facilitate a better market dynamic. The work custodians and banks will have to do is large but worth the effort.

Be the first to give this comment the thumbs up 0 thumb ups!
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US agrees T+2 timetable

US agrees T+2 timetable

18 June 2015  |  4654 views  |  0 comments | 4 tweets | 7 linkedin
New Zealand puts securities settlement system up for sale

New Zealand puts securities settlement system up for sale

02 June 2015  |  3501 views  |  0 comments | 2 tweets | 2 linkedin
DTCC to oversee US market shift to T+2

DTCC to oversee US market shift to T+2

16 October 2014  |  10099 views  |  0 comments | 4 tweets | 2 linkedin
UK and Ireland to move to T+2 settlement

UK and Ireland to move to T+2 settlement

02 December 2013  |  8512 views  |  0 comments | 4 tweets | 10 linkedin
Euroclear CSDs to move to T+2 in 2014

Euroclear CSDs to move to T+2 in 2014

24 July 2013  |  4819 views  |  0 comments | 1 tweets
Half of market participants not preparing for T+2 - Omgeo

Half of market participants not preparing for T+2 - Omgeo

31 October 2012  |  9582 views  |  1 comments | 4 tweets | 2 linkedin
Shortening US trade settlement cycle a big money saver - BCG

Shortening US trade settlement cycle a big money saver - BCG

05 October 2012  |  7375 views  |  2 comments
Up to one in ten trades still fail to settle on time

Up to one in ten trades still fail to settle on time

16 May 2012  |  10883 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comVisit http://go.jumio.com/finextraAdVisit www.vasco.com/news/mobile-first

Who is commenting?

Top topics

Most viewed Most shared
satelliteAnt Financial provides tech for China Ever...
37077 views comments | 3 tweets | 2 linkedin
Digital banking transformation creating new systemic risksDigital banking transformation creating ne...
9353 views comments | 18 tweets | 26 linkedin
ING opens developer portalING opens developer portal
7980 views comments | 18 tweets | 23 linkedin
MUFG to roll out blockchain payment network next yearMUFG to roll out blockchain payment networ...
7942 views comments | 13 tweets | 13 linkedin
PayPal and Google bind payment railsPayPal and Google bind payment rails
7635 views comments | 11 tweets | 17 linkedin

Featured job

Package guide £250-300K
London

Find your next job