South Africa: Change from T+5 to T+3 Settlement Cycle

10.06.2016

Clearstream Banking1 advises customers that, effective

Monday 11 July 2016

The South African settlement cycle for all equities trades will shorten from a T+5 to a T+3 settlement cycle.

The change of settlement cycle has been a market-wide initiative spearheaded by the Johannesburg Stock Exchange (JSE) in order to comply with global best practices, as recommended by the International Organisation of Securities Commissions (IOSCO). The shortened settlement cycle is expected to reduce settlement risk and exposure, as well as to enhance efficiencies in settlement procedures.

Trading and settlement

The implementation dates for the new settlement cycle for the South African market are as follows.

Trade DateTrade DaySettlement DateSettlement Day
Last T+5 trading day8 July 2016Friday15 July 2016Friday
First T+3 trading day11 July 2016Monday14 July 2016Thursday

Corporate Actions

Corporate action timelines will be aligned to the T+3 cycle during the week of migration.

The market has decided, to ensure a smooth transition from T+5 to T+3, no corporate events will be announced with a Last Day to Trade (LDT) that falls between 1 July 2016 and 18 July 2016.

Impact on customers

Customers are requested to take note of the above changes and to send timely settlement instructions to Clearstream Banking to avoid settlement delays.

Note: Cash, funding and Foreign Exchange deadlines will be unaffected by the above changes.

Further information

The Creation Link Guide – South Africa will be updated accordingly.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.