Philippines: Implementation of T+2 settlement cycle
Clearstream Banking1 informs clients that effective trade date
24 August 2023
the Philippines settlement cycle for all Philippine Stock Exchange (PSE)-traded securities will be shortened from T+3 to T+2.
The change of settlement cycle is a market-wide initiative spearheaded by the Philippine clearing house (Securities Clearing Corporation of the Philippines (SCCP)), in cooperation with the PSE, Philippine central securities depository for equities (Philippine Depository and Trust Corp. (PDTC)), the Securities and Exchange Commission (SEC), trading participants, custodian banks, among others. The shortened settlement cycle is expected to reduce settlement risks in the market and align the Philippines with its peers in the region.
Trading and settlement
The implementation date of the new settlement cycle in the Philippines market is as follows:
Trade date | Trade day | Settlement date | Settlement day | |
Last T+3 trading day | 23 August 2023 | Wednesday | 29 August 2023 | Tuesday |
First T+2 trading day | 24 August 2023 | Thursday | 29 August 2023 | Tuesday |
Corporate actions
Corporate action ex-period under the new settlement cycle is as follows:
Under T+3 (existing) | Under T+2 (new) | Effective date for new ex-period under T+2 | |
Record date = Book closing date | Ex-date+3 | Ex-date+1 | 24 August 2023 |
Impact on clients
Clients are requested to take note of the changes and to send timely settlement instructions to Clearstream Banking to avoid settlement delays.
Note: Settlement, cash, funding and foreign exchange deadlines will be unaffected by these changes. As 28 August 2023 is a public holiday in the Philippines, clients should ensure that they reflect the correct settlement date under T+2 settlement cycle.
Further information
The Market Link Guide - Philippines will be updated accordingly.
For further information, please contact Clearstream Banking Client Services or your Relationship Officer.
------------------------------------------
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.