HKEX Maps Path to T+1 Settlement in Hong Kong
HKEX has set out a phased roadmap for Hong Kong’s securities market to move from T+2 to T+1 settlement, with no final implementation date announced.
Hong Kong Exchanges and Clearing has outlined a roadmap for moving Hong Kong’s securities market to a T+1 settlement cycle. Under the proposed system, trades would be settled one business day after execution.
The plan provides a phased process for brokers, banks, asset managers, custodians, technology providers and other market participants to prepare for the shorter cycle. The transition will require changes across trading, clearing, settlement, custody and other post-trade operations.
Market participants will need to assess their procedures and update systems. The roadmap also covers coordination across Hong Kong’s market infrastructure before a final timetable is set.
Hong Kong currently uses a T+2 settlement cycle, meaning securities and cash are transferred two business days after a trade. T+1 settlement would shorten the period between execution and settlement.
The roadmap follows the introduction of shorter settlement cycles in several other major markets. The exchange plans to provide further details on implementation arrangements and the transition schedule as planning continues.
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