Settlement Cycle (T+2)
PURPOSE OF ADOPTING A TWO BUSINESS DAY SETTLEMENT CYCLE
Following the 2008 global financial crisis, the industry increased its focus on reducing risk, achieving greater transparency and improving efficiency in order to establish a safer market environment. As a result, markets across the globe have transitioned, or are in the process of transitioning, to a T+2 (trade date plus two days) settlement cycle.
Central Securities Depositories (CSDs) are systemically important infrastructures in modern securities markets, performing crucial services to support the registration, safekeeping and settlement of securities. Through the operation of securities settlement systems, CSDs perform a critical role in carrying out the safe and efficient transfer of securities.