KUALA LUMPUR: Bursa Malaysia Bhd has announced that the T+2 settlement cycle will launch on April 29 this year.According to a statement by the stock exchange, the launch date was determined following consultation with the industry and relevant stakeholders. "The Securities Commission Malaysia has approved changes to the relevant rules on 26 March 2019 to facilitate the move to a T+2 settlement cycle. "Market participants have also successfully completed a series of systems testing to ensure a smooth transition prior to the launch," it said.The migration from a T+3 to T+2 cycle is part of Bursa Malaysia's ongoing efforts to improve operational efficiency and reduce systemic risk. "Investors will experience a faster settlement process, whereby their trades are 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 major global exchanges in the US, Europe and Asia-Pacific, which are already operating a T+2 settlement cycle."
Source: The Star April 16, 2019 02:03 UTC