[ANALYSIS] Migration to stock market's T+2 new settlement cycle

  • 📰 rapplerdotcom
  • ⏱ Reading Time:
  • 72 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 86%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

The Securities and Exchange Commission also approves a two-week transition period where the applicable settlement deadlines are extended by one hour from August 29 to September 11

of all trading transactions of member brokerage houses to the so-called T+2 settlement cycle.

In the US, the T+2 settlement cycle was formally adopted in 2017 when the US SEC on March 22, 2017 amended Exchange Act Rule 15c6-1to shorten the standard settlement cycle to T+2.For the information of the general reading public, “settlement” simply means the formal transfer of the stocks to the buyer and receipt of payment of said sold stocks to the seller. And the period of time by which the transaction is to be consummated is called the “settlement cycle.

Similarly, if you are buying, you need to pay for your stock transactions one business day earlier. And if you are trading on margin, you have to work out the specific arrangements with your stockbroker.From what I can remember, our settlement process before this new T+2 cycle policy has always been under the T+3 settlement cycle.

If you will notice in the above days of settlements, the first T+2 transactions were completed after three days. Under the T+2 cycle rule, their settlements should fall on August 28, Monday. This could not be done, however, because August 28 was a national holiday. It was National Heroes Day. In the last two weeks the market has been moving sideways to downward. When it closed last Friday, August 24, which was the first day of bourse’s migration plan to the T+2 cycle, the PSEi precariously hanged by some 60.61 points only above its technical immediate support – at the same time breakdown – point of 6,100.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hong Kong grounds flights, closes stock market as Typhoon Saola nearsHONG KONG , China -- Hong Kong grounded flights, shut down its stock market and closed schools on Friday as Super Typhoon Saola barrelled towards China's southern coast.
Source: manilabulletin - 🏆 25. / 51 Read more »