Bursa Malaysia readies for T+2

The migration from a T+3 to T+2 settlement cycle is part of Bursa Malaysia’s ongoing efforts to improve operational efficiency and reduce systemic risk. Investors will experience a faster settlement process, whereby their trades are cleared and settled two days after the trade day. The shorter settlement cycle will align the clearing and settlement processes of the Malaysian capital market with those of major global exchanges in the US, Europe and Asia-Pacific, which are already operating a T+2 settlement cycle.

The launch date was determined following consultation with the industry and relevant stakeholders. The Securities Commission Malaysia has approved changes to the relevant rules on 26 March 2019 to facilitate the move to a T+2 settlement cycle. Market participants have also successfully completed a series of systems testing to ensure a smooth transition prior to the launch.

This migration gives the Exchange the opportunity to educate and inform investors about the settlement cycle and how to effectively use it to enhance their investment and trading of stocks on Bursa Malaysia.

How T+2 Works

If an investor buys shares on Monday, they will only have to pay for the shares by Wednesday.