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BURSA MALAYSIA : NO CHANGE TO T+3 SETTLEMENT TO CLEARING HOUSE.
BackJan 12, 2006
12 Jan 2006
BURSA MALAYSIA : NO CHANGE TO T+3 SETTLEMENT TO CLEARING HOUSE
Bursa Malaysia Securities Berhad (Bursa Securities) would like to clarify that there is no change to the T+3 timeframe for settlement of trades with Bursa Malaysia Securities Clearing Sdn Bhd (the Clearing House).
Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia Berhad said, "There seems to be some confusion arising from our announcement of the discretionary financing (DF) facility.
The market needs to be clear that the exchange's settlement period has not changed. DF permits a client to make payment to the PO by T+7. This arrangement for payment by client is entirely at the broker's discretion and does not change the settlement period to the exchange."
With the introduction of DF, the PO's timeframe for settlement of its client's purchase position vis the Clearing House still remains the same at T+3. However, POs may now allow clients to pay for their position to the PO by T+7, thereby financing their client's purchase position for the period between T+4 and T+7.