KUALA LUMPUR: Bursa Malaysia Bhd has announced that the T+2 settlement cycle will be launched on April 29.
The migration from a T+3 to T+2 settlement cycle is part of Bursa's ongoing efforts to improve the operational efficiency and reduce systemic risk.
Investors will experience a faster settlement process, whereby their trades are cleared and settled tow days after the trade day., Bursa said in a statement.
The shorter settlement cycle will align the clearing and settlement processes of the Malaysian capital market with those of major global exchanges in the US, Europe and Asia-Pacific, which are already operating a T+2 settlement cycle.
The launch date was determined following consultation with the industry and relevant stakeholders.
The Securities Commission has approved changes to the relevant rule on March 26 to facilitate the move to a T+2 settlement cycle.
Bursa said market participants had completed a series of systems testing to ensure a smooth transition prior to the launch.
“This migration gives Bursa Malaysia the opportunity to educate and inform investors about the settlement cycle and how to effectively use it to enhance their investment and trading of stocks on the stock exchange,” it added.