Hong Kong Exchanges and Clearing intends to shorten the securities settlement cycle from T+2 to T+1 by the latter half of 2028, pending market and regulatory approval. The timeline was extended from an initial proposal targeting late 2027.
- The consultation attracted 109 responses from brokers, custodians, investment managers, and other stakeholders.
- HKEX will implement a three-layer framework including extended settlement instruction windows and real-time updates via API.
- A separate platform will standardize ETF creation and redemption for T+1 settlement.
- HKEX plans industry engagement through associations, working groups, and townhalls starting in 2026.
Why it matters
Accelerating settlement to T+1 will require enhanced operational efficiency and greater automation from market participants, potentially reducing settlement risk and improving capital efficiency for SME investors and financial service providers. Companies involved in securities trading and custody services will need to adapt systems and workflows to meet new timing and data requirements.
Source: Fintech News Hong Kong
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