Cyprus: Cyprus Stock Exchange confirms migration to T+2 settlement

Market Coverage | Cyprus

Reference

Code

M14024

Service level

CBL

Last Updated

20.06.2014

Cyprus Stock Exchange (CSE) has officially announced that, with effect from 6 October 2014, it will migrate to the T+2 settlement cycle.

This is further to our Marketflash M14022, dated 4 June 2014.

Impact on settlement

On Monday 6 October 2014, the settlement cycle of transactions executed in listed securities traded on CSE markets will be shortened from T+3 to T+2.

Trades executed until Friday 3 October 2014 will be settled following a T+3 settlement cycle.
Trades executed as of Monday 6 October 2014 will be settled following a T+2 settlement cycle.

This change of settlement cycle will also apply in the case of Over the Counter (OTC) trades executed on the Central Registry/Depository of the CSE.

Impact on corporate actions and income payments

For any corporate actions and income payments with Record Date on/after Wednesday 8 October 2014, the following will apply:

Ex-Date will be one business day (instead of two) before Record Date; that is:

Ex-Date will = Record Date -1
Last Trading Date applicable to conversions of shares from one category to another (for example, reverse split) will be set to two business days (instead of three) before Record Date; that is:

Last Trading Date will = Record Date -2

Schedule in the market

July 2014	Implementation of the required changes in the test environment of the Dematerialised Securities System and execution of migration tests.
September 2014	Implementation of the required changes to the Regulatory Framework.
October 2014	Migration of the Dematerialised Securities System to the production environment.

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