NZX consults on proposal to shorten settlement cycle to T+2

Source: NZX

NZX is proposing to move to a shortened trading settlement cycle from the current trade date plus three business days settlement (T+3) to a trade date plus two business days settlement (T+2) for cash market trades on its markets.

Key benefits of the proposal are the reduction of risk to those involved in the settlement process and maintaining alignment of settlement cycles in New Zealand and Australian capital markets. Technological changes in the industry mean that a shortened settlement cycle is possible and is consistent with a wider move around the world from T+3 to T+2.

Due to the importance of the settlement cycle to the broader market, NZX considers it appropriate to consult on the proposed change, to better understand how the change will impact market participants.

The reasons for the proposed change, the key impacts resulting from the change and the proposed timetable for implementation of the change, are set out in NZX’s consultation paper. NZX is seeking feedback on the proposal. The consultation paper and information about making a submission can be viewed at:

Submissions should be sent to

The closing date for submissions is 5.00pm 22 December 2014.

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