Jamaica Stock Exchange Changes to Two-Day Trading (T+2) Settlement Cycle

Posted: October 4, 2017 at 8:45 am

The Jamaica Stock Exchange (JSE) and its subsidiary, Jamaica Central Securities Depository Limited (JCSD), will change the time for settlement of transactions from the current period of trade date plus three (3) days (T+3) to trade date plus two (2) days (T+2). 

This faster settlement cycle will align the JCSD to International Standards, facilitate Increased Liquidity and better Cash Management for stockbrokers and investors, and be generally more efficient for all stakeholders.  The transition from T+3 to T+2 is scheduled for December 11, 2017.

The movement of shares and cash currently takes three business days to complete (settle) from the day the trade was made, thus referred to as T+3.  A faster and more efficient T+2 settlement cycle means that transactions will be completed in two days.  On the cash side, both the brokers and clients will get paid one day earlier.  This reduced settlement cycle will have a positive impact on the market’s liquidity and cash management.

“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, Mrs. Marlene Street Forrest.

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

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