The Qatari CSD Edaa has postponed the reduction of the settlement period from T+3 to T+2 until March 2024, in coordination with the Qatar Financial Market Authority (QFMA).
Sheikh Saif bin Abdullah Al-Thani, CEO of Edaa, indicated that the deadline was granted so that market participants, financial intermediaries and custodians could update their systems and notify their clients of the new procedures in preparation for its implementation.
He added that the move is designed to strengthen and develop Qatar’s financial market, attract investments in securities, and speed up the turnover of the investment process for the general benefit of the market and investors.
“This strategic move focuses on shortening the settlement period at the Qatar Stock Exchange (QSE) from T+3, three working days after the date of the sale or purchase, to T+2, a two working day period from the date of the sale or purchase,” said Edaa in a statement.
“Thus leading to a qualitative leap in the speed of trading at QSE. Aligned with international best practices, this initiative promises to strengthen Qatar’s position in the global capital markets arena.”
Originally the switch was planned to take place on 2 January 2024.
Many markets around the world are looking to reduce their settlement times following India’s shift to T+1 earlier this year and the landmark reduction set to occur in North America in May 2024.
The Philippines went from T+3 to T+2 on 24 August 2023, while Mexico plans to move to T+1 next year, and other Caribbean and South American countries are pondering aligning with their regional counterparts.