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Shortening Stock Settlement Cycle

Implementation of Shortening of Stock Settlement Cycle (T+2)

As a result of the successful migration rehearsal test of today amongst market infrastructures and participants, the T+2 will be implemented on July 16, 2019 (Tue.) (trade date basis) as scheduled.

 

 


 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).

Japan Securities Clearing Corporation and Japan Securities Depository Center, Inc. has conducted the Operational Check Test / RT for T+2 Implementation (RT) since December 2018. On May 14, 2019, WG judged that the result of the RT was successful, and accordingly announced its decision to launch T+2 Implementation on Tuesday, July 16, 2019 (trade date basis), which is now the date set as the target go-live date.

Any further updates on the T+2 implementation in the Japanese market will be posted here.

Shortening Stock Settlement Cycle (T+2 Implementation) Go-live Date is Fixed (May 14, 2019)new.gif

Holiday Test (Operational Check Test/RT) Procedures [For All Participants] (updated January 10, 2019)

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)

Final Report of the Working Group on Shortening Stock Settlement Cycle (Tentative Translation) (June 30, 2016)

Abstract of the Final Report of the Working Group on Shortening Stock Settlement Cycle (Tentative Translation) (June 30, 2016)

Abstract of the Interim Report of the Working Group on Shortening Stock Settlement Cycle (Tentative Translation) (December 29, 2015)

Brochure “Move to T+2 Settlement in Japan”