PSE to implement T+2 settlement by Aug. 24

Philippine Stock Exchange, Inc. (PSE) said on Tuesday its subsidiary Securities Clearing Corporation of the Philippines (SCCP) is set to implement the two-clearing day initiative for stock market transactions.

In a press release, PSE said the clearing house obtained approval from the Securities and Exchange Commission (SEC) to start implementing the T+2 settlement cycle by Aug. 24.

“The successful roll out by SCCP of its new clearing and settlement infrastructure five months ago has led to this landmark development for our market,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.

“We expect the shortened settlement cycle to enhance operational efficiency and reduce risk,” Mr. Monzon added.

The local bourse operator said the move is in line with the T+2 settlement cycle already implemented for financial markets overseas.

“I am optimistic that the compliance rate of clearing members on the delivery of securities and cash obligations will continue to be within the current range,” he said

“Since August 28, Monday, has been declared a national holiday, trades on Aug. 24 will be settled on Aug. 29, Tuesday. That is the same settlement date for trades completed on Aug. 23, the last trading day under the T+3 cycle,” PSE said.

It added that all transactions starting Sept. 12 would be subject to the regular noon settlement deadline.

“Applicable penalties for late settlement under the SCCP Rules shall apply,” it added. — Adrian H. Halili