17 July 2018
Register today

Taiwan Stock Exchange to roll out new settlement system

22 January 2009  |  1745 views  |  0 Source: Taiwan Stock Exchange

Taiwan Stock Exchange (TWSE) will implement new settlement system from February 2 2009.

The settlement time of broker/dealer is changed to 10 a.m. of T+2 for securities and 11 a.m. of T+2 for money.

Settlement time for investors is adjusted to 10 a.m. of T+2. Brokers have to report default of investors to TWSE before 11 a.m. of T+2. Settlement time of overseas investors can be extended to T+3 if their brokers have submitted to TWSE for the status of failed trades for them. Under the new settlement system, the investors can get their money in the early morning, soon after their brokers have completed settlement.

Brokers failing to complete securities settlement in time can apply to TWSE for borrowing stocks for settlement purpose. If they fail to apply for borrowing stocks before 10 a.m. of T+2, TWSE will initiate mandatory borrowing. Brokers in the above two cases have to deposit collateral with TWSE before 11 a.m. of T+2.

The new settlement system brings several benefits to the market: increasing settlement-preparatory time for both investors and brokers, reducing criticism on the over-night risk between delivery of securities and receiving of money on the part of sell-side investors and brokers, and increasing usability of the securities held by the sell-side investors.

 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit https://secure.vasco.comVisit info.nice.com

Top topics

Most viewed Most shared
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
10241 views comments | 19 tweets | 30 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
9144 views comments | 5 tweets | 14 linkedin
Championing financial inclusion and helping the UnstoppablesChampioning financial inclusion and helpin...
8617 views comments | 3 tweets | 1 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
8520 views comments | 6 tweets | 14 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
7621 views comments | 1 tweets | 5 linkedin

Featured job

to GBP Six-Figure Base, double ote, benefits
London, UK

Find your next job