NZX Confirms Move Date To T+2 Settlement Cycle

Following successful testing by NZX market participants and software providers, NZX confirms it will transition to a shortened T+2 settlement cycle for all trades executed on its cash markets on Monday 7 March 2016.

Shortening of the settlement cycle from trade date plus three business days (T+3) to trade date plus two business days (T+2) ensures NZX matches international best practice in this area, and maintains alignment across New Zealand and Australia’s capital markets, with the ASX also moving to a T+2 settlement cycle on Monday 7 March.

The transition requires a number of changes to NZX’s existing rules, which will come into effect on Monday 7 March 2016. The updated rules amendment notices can be viewed at: https://nzx.com/regulation/T2-settlement

In addition, corporate actions will be aligned with the T+2 settlement cycle. This will shorten the timetable by one day, reducing the Ex Period to 2 days, including the Record Date. An explanation of how this will impact the timetables of corporate actions falling near the effective date of the move to a T+2 settlement cycle is provided at the link above.

More information about the transition to a T+2 settlement cycle can be found at: https://nzx.com/regulation/T2-settlement