KUALA LUMPUR, 19 April 2019 – T+2 settlement cycle was announced to be launched on 29 April 2019 by Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) on Tuesday, 16 April 2019.
The migration from a T+3 to T+2 settlement cycle is part of Bursa Malaysia’s ongoing efforts to improve operational efficiency and reduce systemic risk. Investors will experience a faster settlement process, whereby their trades are cleared and settled 2 days after the trading day. The shorter settlement cycle will align the clearing and settlement processes of the Malaysian capital market with those of major global exchanges in the US, Europe, and Asia-Pacific, which are already operating a T+2 settlement cycle.
The launch date was set following consultation with the industry and relevant stakeholders. The Securities Commission Malaysia has approved changes to the relevant rules on 26 March 2019 to facilitate the move to a T+2 settlement cycle. Market participants have also successfully completed a series of systems testing to ensure a smooth transition prior to the launch.