Mexico: Move to a T+1 settlement cycle approved by financial authorities
Clearstream Banking1 informs clients that on 12 April 2024, the National Banking and Securities Commission (CNBV) and Mexico’s central bank (BANXICO) have approved changing the settlement cycle for equity securities from two business days (T+2) to one business day (T+1). Effective
27 May 2024
Contraparte Central de Valores (CCV, Mexico’s equities CCP) will successfully conclude the regulatory modification process to reduce the ordinary settlement cycle of equity securities to one business day (T+1) as requested by the Asociación Mexicana de Instituciones Bursátiles (AMIB, Mexican association of brokerage firms).
CCV will publish the modifications to their internal bylaws and manual to formalise the change.
Which instruments are in scope of T+1?
The scope of the move to T+1 settlement comprises Mexican equities and those listed in the international quotation system (SIC), which both consider the United States of America and Canada as their principal markets.
The CCP, in coordination with the AMIB and the financial authorities, will continue to work on the preparations for implementing the change and ensure a successful transition to T+1.
What is the migration timeline for T+1 in Mexico?
The transition will be performed during the conversion weekend of 25 to 26 May 2024. The migration key dates for instruments moving to T+1 settlement are as follows:
Friday, | Saturday, | Sunday, | Monday, | Tuesday, | Wednesday, | Thursday, |
Last T+2 Trade Date | Conversion Weekend | Conversion Weekend | First T+1 Trade Date | Double Settlement Date | Trade and settle T+1 | Trade and settle T+1 |
To facilitate the transition to T+1 settlement, there will be a double settlement date on Tuesday, 28 May 2024, for transactions executed on Friday, 24 May 2024 (last trade date for T+2 settlement), and Monday, 27 May 2024 (first trade date for T+1 settlement).
Impact on clients
Clearstream Banking is currently analysing the impact of the transition with regard to its IT infrastructure and business processes to support a seamless shift from T+2 to T+1 settlement.
Clearstream Banking will update clients on any potential impact on the various services, that is, settlement, cash, income and corporate actions, in due time.
Clients are recommended to review related publications issued by the competent authorities to assess the impact of the shortened settlement cycle.
Further information
For further information, clients may contact Clearstream Banking Client Services or their 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 (for Clearstream Banking AG clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.