Ensuring global best practice: T+2 settlement for Australian fixed income markets getting closer

As many financial market participants will already be aware, the Australian Financial Markets Association (AFMA) recently announced that the change to T+2 settlement for secondary market traded fixed income products will go live on 7 March 2016.

This change is intended to complement the Australian Securities Exchange's (ASX) move to T+2 settlement for cash equities, with the ASX currently targeting the same transition date for those and other types of CHESS eligible securities. It also brings Australia into line with other major markets across the world, with other jurisdictions currently either examining or in the process of implementing the change (USA, Canada, Japan) or having already completed a move to T+2 (European Union, Hong Kong and South Korea).