In July 2015, JSDA, TSE (Tokyo Stock Exchange) and JSCC (Japan Securities Clearing Corporation) set up the "Working Group on Shortening Stock Settlement Cycle (WG)" as its secretariat to conduct discussion amongst market participants and related parties for realization of shortening stock settlement cycle in Japan (change of settlement cycle to T+2).
On December 29, the WG published “Interim Report of the Working Group on Shortening Stock Settlement Cycle”, which included results of the discussions at the WG to that date and the target schedule for the change of settlement cycle to T+2.
After its publication of the interim report, the WG continued to work on the studies of the tasks raised in the interim report as remaining tasks for study, and published the study results at WG to date as the final report on June 30, 2016.
On September 29, 2017, the JSDA published the point to note concerning settlement failure for stocks. Reflecting on the discussion at the WG, the point describes the measures for avoidance of settlement failures for the reference of market participants. The JSDA also disseminated Guidelines on Borrowing and Lending Transactions of Share Certificates, etc. to market participants, which describes the best practices in the Borrowing and Lending Transactions of Share Certificates, etc. for streamlining the related operations.
Through deliberation at the Council on Securities Delivery and Clearing/Settlement Systems Reform, which is the upper body of the WG, it was decided that the scheduled implementation date of the T+2 settlement cycle is Tuesday, July 16, 2019 (trade date basis).
Any further updates on the T+2 implementation in the Japanese market will be posted here.
Holiday Test (Operational Check Test/RT) Procedures [For All Participants] (January 10, 2019 updated)
Implementation Date of T+2 Stock Settlement Cycle (May 28, 2018)
Guidelines on Borrowing and Lending Transactions of Share Certificates, etc. (September 29, 2017)
Points to Note concerning Settlement Failure for Stocks (September 29, 2017)
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