Malaysia: Implementation of T+2 settlement cycle
This announcement, originally published on 18 February 2019, has been updated to correct the deadlines for summer and winter times in Europe.
Clearstream Banking1 informs customers that, effective
29 April 2019
the Malaysian settlement cycle for all listed securities (scripless) trades will shorten from T+3 to T+2.
The change of settlement cycle has been a market-wide initiative spearheaded by the Malaysian stock exchange (Bursa Malaysia), the Malaysian central securities depository (Bursa Malaysia Depository) and the Malaysian clearing house (Bursa Malaysia Securities Clearing). The shortened settlement cycle is expected to reduce settlement risks in the market.
Trading and settlement
The implementation date of the new settlement cycle in the Malaysian market is as follows:
Trade Date | Trade Day | Settlement Date | Settlement Day | |
Last T+3 trading day | 26 April 2019 | Friday | 2 May 2019 | Thursday |
First T+2 trading day | 29 April 2019 | Monday | 2 May 2019 | Thursday |
Note: 1 May 2019 is a public holiday in Malaysia. Therefore, 2 May 2019 becomes the settlement date for both the last T+3 trading day and first T+2 trading day.
Corporate actions
Corporate action ex-period under the new settlement cycle is as follows:
Under T+3 (existing) | Under T+2 (new) | Effective date for new ex-period under T+2 | |
Record date = Book close date | Ex-date+2 | Ex-date+1 | 29 April 2019 |
Impact on customers
Under the new T+2 settlement cycle, the settlement deadlines for listed securities (scripless) will change as follows:
Instruction | Current deadline | New deadline from 29 April 2019 | New deadline from 27 October 2019 |
Free of payment and Against payment book-entry settlement via Bursa Depository Transfer | |||
Receipts | No change | ||
Deliveries | 09:55 SD-1 | 05:55 SD-1 | 04:55 SD-1 |
Against payment book-entry settlement via Institutional Settlement Service (ISS) mechanism | |||
Receipts | 09:55 SD-2 | 10:55 SD-1 | 09:55 SD-1 |
Deliveries | 09:55 SD-2 | 10:55 SD-1 | 09:55 SD-1 |
Note: All times are in Central European Time (CET).
Customers are requested to take note of the changes and to send timely settlement instructions to Clearstream Banking to avoid settlement delays.
Note: SSDS-eligible securities, cash and foreign exchange deadlines will be unaffected by these changes.
Further information
The Market Link Guide – Malaysia 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 (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.