The NZX and ASX markets intend to reduce their current settlement period of trade date plus three business days (T+3) to a settlement period of trade date plus two business days (T+2) for trades on their markets.
Why is the change being made?
Shortening of the settlement period on NZX and ASX markets will ensure NZX and ASX match international best practice in this area and align with each other.
When is the change being made?
The new T+2 settlement period will apply to transactions entered into on or after Monday 7th March 2016.
What does this mean for you?
If you buy securities on or after Monday 7th March 2016, payment must be made in cleared funds within two business days after the trade takes place.
If you sell securities on or after Monday 7th March 2016, payment will be made to you overnight on the second business day after the trade has taken place.