The T+2 settlement cycle will be launched on The Bursa Malaysia Exchange on 29 April 2019.
The move to T+2 settlement will see investor’s trades 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 other global exchanges in the US, Europe and the Asia Pacific, which are already operating a T+2 settlement cycle.
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.
The launch date was determined following consultation with the industry and relevant stakeholders.
The Securities Commission Malaysia approved changes to the relevant rules on 26 March 2019 to facilitate Bursa Malaysia’s move to a T+2 settlement cycle.
Market participants have also completed a series of systems testing to ensure a smooth transition prior to the launch.
According to Bursa Malaysia, this testing 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.
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