HKEX pushes T+1 cash market settlement target to second half of 2028
Hong Kong Exchanges and Clearing has deferred the target for implementing T+1 settlement in the cash market to the second half of 2028, from the fourth quarter of next year. The move follows a consultation with 109 responses showing strong support, and will use a three-layer implementation framework
Hong Kong Exchanges and Clearing (0388) said on Friday that the T+1 settlement cycle for the cash market now targets implementation in the second half of 2028, deferred from the fourth quarter of next year, subject to market readiness and regulatory approval.
The city's bourse operator said it received 109 non-duplicated responses from brokers, custodians, investment managers, industry associations, technology providers, investors and other stakeholders to The Consultation Conclusions on Accelerated Settlement for the Hong Kong Cash Market.
Respondents showed strong support for the transition to T+1 settlement, recognising its potential to enhance market efficiency, reduce settlement risk, improve capital efficiency and strengthen Hong Kong's competitiveness as an international financial centre, HKEX noted.
Following careful consideration of the feedback and to facilitate the transition, HKEX will adopt a three-layer implementation framework covering: enhancements to its own post-trade infrastructure and operating model; development of targeted workflow tools and services; and industry-wide coordination on market practices and ecosystem readiness for topics outside its own infrastructure and operating model.
Consistent with the home market principle, Southbound Stock Connect transactions will continue to follow Hong Kong's settlement arrangements and advance to T+1 as well, HKEX said.
Industry-wide testing and readiness assessments will be conducted at a later stage to help market participants familiarise themselves with the new and updated arrangements, it said. HKEX added that it will announce the exact transition date in due course, subject to regulatory approval and market readiness.