JOHANNESBURG: THE Johannesburg Stock Exchange (JSE) will implement the final phase of its move to a T+3 settlement cycle in the middle of next year. Implementation, to take place between June 25 and July 23, is in line with initial projections that the project would be going live between May and July.
“The successful implementation of Phase 3 will conclude one of the most ambitious initiatives undertaken by the exchange, and will bolster the credibility of South Africa as an investment destination by bringing the market even closer to international best practice in the settlement space,” said JSE Director of Post-Trade and Information Services, Leila Fourie. The first and second phases of the project, implemented in July 2013 and October 2014, have already introduced significant efficiencies to the current settlement process, and have established a solid foundation for the move to a shorter settlement cycle, said Fourie.
“The JSE currently has a strong post-trade base across all markets and aims to provide world-class services. T+3 is just one of the initiatives that the JSE is implementing to achieve this. The exact implementation date will be confirmed once we have done further testing,” said Fourie. The “T+3” project aims to move the settlement cycle for equity transactions from its current of T+5 cycle to a new shorter T+3 cycle. T+3 refers to the number of business days that elapse from the day on which a transaction takes place, to the day on which the transaction must be settled.
SOURCE: CAJ NEWS AGENCY