Starting today (29 April), securities trade on Bursa Malaysia will be executed on T+2 settlement, a move first proposed in March 2018.
The proposal was part ongoing efforts to improve operational efficiency, reduce systemic risks and align the clearing and settlement processes of Malaysia’s capital market with international practices.
Given that 1 May 2019 is a national public holiday, 29 April trades will be settled on 2 May 2019.
“The launch of T+2 settlement cycle will bring Bursa Malaysia in line with regional and major exchanges around the world,” said Bursa Malaysia cief Datuk Muhamad Umar Swift. “Bursa Malaysia appreciates the collaborative effort and support of the industry players and regulators as we collectively work towards its successful implementation.”
ASCM (Association of Stockbroking Companies Malaysia) chairman Dato’ Ahmad Azman Dato’ Abdul Manaf said, “ASCM strongly supports Bursa’s efforts to shorten the settlement cycle which will reduce counterparty risk, improve operational efficiency, strengthen market’s competitiveness and increase global harmonisation.”
“We thank Bursa Malaysia’s team for actively engaging the stockbroking industry in preparing for this migration to T+2 settlement cycle,” said MIBA (Malaysian Investment Banking Association) Stockbroking Committee chairman Lok Eng Hong.
“With this T+2, our settlement cycle will be in line with other regional markets such as Thailand, Indonesia and Singapore,” Lok added.
In Asia Pacific, Taiwan, India, Korea, Hong Kong, Australia and New Zealand also operate on a T+2 settlement cycle. Japan will make the shift in July 2019.