Singapore Exchange (SGX) will be launching a new securities settlement and depository framework and system on 10 December 2018, enabling a shorter securities settlement cycle of two days (T+2) and simultaneous settlement of money and securities.
“Come 10 December, we will align our securities clearing and settlement processes with global standards, strengthening Singapore’s position as an international financial centre. With the new settlement and depository framework, securities and funds will be made available to investors earlier, while reducing risks across systems and markets. Our new system will also enable us and our securities members to enhance services for the market,” said Chew Sutat, Executive Vice President and Head of Equities and Fixed Income, SGX.
Moving from a T+3 to a T+2 settlement cycle will harmonise Singapore’s stock market with that of global markets including Australia, the European Union, Hong Kong and the US. Other improvements that investors can expect include the simultaneous settlement of securities and money, and the streamlining of Central Depository Pte Ltd (CDP) notifications.
In addition, the new settlement and depository system will allow a broker-linked balance functionality to be made available to investors. This functionality allows investors to give their chosen brokers visibility over specific securities. This will provide brokers the ability to offer more personalised products and services to their clients.