Summary

Asian markets have been harmonizing toward the international standard of a T+2 settlement cycle in recent years to attract more investment into Asia, with Indonesia, Malaysia and Singapore now harmonized to T+2. The Philippines is exploring its own migration as well towards T+2.

The China A share market requiring predelivery and prefunding amidst a unique T0/T1 settlement cycle had been a sole outlier and remains to be of concern for global investors. Broker financing via the Connect Scheme between Shanghai/Shenzhen/Hong Kong has helped intermediate trading frictions for global investors and enhanced frameworks to improve the settlement process by both Chinaclear (for DVP) and by HKEX (for Synapse) is underway. Meanwhile, with the announcement to shorten its settlement cycle from the international standard of T+2 to T+1 starting in 2024, India has followed suit with its own migration to T+1, but two years ahead of the US schedule.

This panel aims raise awareness around DVP and settlement cycles with particular focus on the US and China, the challenges and opportunities, and to explore trends and implications.