We’re writing to inform you of the upcoming change to the T+2 settlement cycle for the Australian share market and how it may affect your account.
What is a T+2 settlement?
From 7 March 2016, the Australian Securities Exchange (ASX) is moving to a T+2 settlement cycle, meaning the settlement period for trades on the Australian share market will be shortened by one day.
Settlement of all trades will be required within two business days after the day a trade takes place, known as T+2 (trade date plus two business days).
For more information on T+2, please visit the ASX website.
Why the change?
This industry change was made with investors in mind, as faster settlement means quicker access to money after selling shares and earlier delivery after purchasing shares.
The move also makes Australia globally competitive and improves efficiencies in the securities market.
What this means for you
If investors do not meet the new 2 day turnaround time for settlement, they will likely incur late settlement fees from the ASX.
We still want you to be aware of the change and we encourage you to review your settlement routine to ensure they will meet the new cycle from March and not be affected by late settlement fees.
Should you have any concerns or queries please do not hesitate to contact our office on 07 3421 0100 or email email@example.com