The Singapore Exchange (SGX) has rescheduled the implementation of new settlement processes, originally planned for 6 November, because of an “isolated incident” in its pre-settlement matching system. The exchange has not given a new implementation date.
The effective date of the changes to the settlement process, originally 30 November to allow market participants time to adjust after the implementation, is also under review.
The exchange said the incident, which it stressed was unrelated to the planned changes, impacted the settlement of less than 1%
of institutional trades. Retail trades were not affected.
“As a prudent measure, the rescheduling of the implementation of the new settlement process will allow more time for the full stability of the pre-settlement matching engine environment,” SGX said in a statement.
On 9 October, the exchange announced it would bring forward the securities delivery deadline to 12.00 on the third day after the trade took place (T+3) to allow the buying-in process for non-delivered securities to be conducted on the afternoon of T+3 instead of the morning of T+4. This would allow the buy-in process to be completed before the trade is deemed to have failed and penalties are imposed.
The changes are aimed at reducing the incidences of non-delivered securities and the imposition of the related penalties.
Under the original plan, SGX was to allow a transition period between 6 and 26 November for market participants to adapt their internal processes. As a result, the new T+3 buy-in time was due to take effect on 30 November.