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JSE to speed up trading settlement cycle

BY HANNIFFA PATTERSON
Business reporter
pattersonh@jamaicaobserver.com

Wednesday, September 20, 2017

In a move to improve speed and meet international standards, the Jamaica Stock Exchange (JSE) and its subsidiary, Jamaica Central Securities Depository Limited (JCSD), have plans to cut the change settlement of transaction times from its current trade period of date plus three days (T+3) to trade date plus two days (T+2) .

The transition date is scheduled for December 11, 2017.

At present, the movement of cash and shares takes three business days to settle from the day trade was made, hence the name T+3. A shorter T- 2 cycle would take only two days and would positively impact market liquidity and bring added benefits, such as earlier cash payouts for both the client and broker.

The change should also increase overall efficiency for stakeholders, improve cash management for investors and stock brokers, and bring the JCSD to international standards.

“The change to T+2 will see the JSE on par with other global markets by the end of 2017. The JSE will continue to evolve by adapting to international best practices so that all our stakeholders can enjoy world-class service,” said JSE's Managing Director, Marlene Street Forrest

“This transition is very important to allow the market to function more efficiently,” said Depository Services Unit Manager, Kadyll McNaught Hermitt.

“Our unit which is responsible to effect the change is working to ensure that the transition from T+3 to T+2 is a smooth process and delivers on schedule,” she said.