SGX launches new securities settlement system 16 November 2018Singapore Reporter: Becky Butcher
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The Singapore Exchange (SGX) will be launching a new securities settlement and depositary framework and system, effective 10 December.
The new framework and system will enable a shorter securities settlement cycle of two days (T+2) and settlement of money and securities.
Moving to T+2, Singapore’s stock market will harmonise with others including Australia, the EU, Hong Kong and the US.
As part of the launch, investors will be able to benefit from the simultaneous settlement of securities and money, and the streamlining of central depository notifications.
It will also allow a broker-linked balance functionality to be made available to investors, which allows investors to give their chosen brokers visibility over specific securities. According to SGX, this will provide brokers with the ability to offer more personalised products and services to their clients.
Chew Sutat, executive vice president and head of equities and fixed income, SGX, commented: “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.”
He added: “Our new system will also enable us and our securities members to enhance services for the market.”
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