ASX Chief Pushes to Accelerate Australia Transition to Next-Day Stock Settlement
The head of the Australian Securities Exchange plans to accelerate the country's transition to next-day share settlement rather than waiting for a planned technology overhaul in 2029. Chief Executive Anthony Attia stated that delaying the shift until the full replacement of the CHESS clearing and settlement platform is completed would take too long.
Australian equity trades have settled on a two-day timeframe, known as T+2, since 2016. Shortening the settlement period to one day reduces financial and operational risks for market participants, aligning Australia with international trading standards. The United States adopted next-day settlement in May 2024, while the United Kingdom, European Union, Switzerland, and Hong Kong are preparing for similar transitions in late 2027.
The exchange operator will consult regulators and industry participants to establish a revised timeline. Prior schedule guidance suggested a transition would not occur until 2030 at the earliest. Market participants previously expressed a preference not to execute the T+1 switch at the exact same time as the second phase of the CHESS system rollout.
Key points
- ASX Chief Executive Anthony Attia plans to consult regulators and market participants on moving Australia to next-day stock settlement sooner.
- Australian share trades currently settle two business days after execution, a standard in place since 2016.
- Attia stated that waiting until 2029 for the full overhaul of the CHESS clearing and settlement system would be too late.
- Other major international equity markets including the US have already adopted one-day settlement, with Europe and Hong Kong targeting 2027.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
What is T+1 settlement in stock trading?
T+1 settlement means that ownership transfer and payment for share trades are completed one business day after the transaction takes place, reducing financial risk between counterparties.
When will Australia move to next-day stock settlement?
Australia currently uses two-day settlement. The exchange chief wants to shorten the timeline, but no firm launch date has been set while consultations with regulators and industry continue.
Why is Australia changing its share settlement timeline?
Faster settlement aligns Australia with global equity markets like the US, which adopted T+1 in 2024, and prevents Australian markets from falling behind major international financial hubs.