Finweek English Edition - - THE WEEK -

The JSE, which is cel­e­brat­ing 20 years of elec­tronic trad­ing, will re­duce its set­tle­ment pe­riod on all eq­uity trades from five days to three in July, bring­ing it in line with international best prac­tice. The move will ben­e­fit in­vestors, as it would in­crease liq­uid­ity and re­duce credit and sys­temic risk, Busi­ness Day re­ported. Liq­uid­ity is ex­pected to in­crease from the cur­rent av­er­age value traded per day of R25bn, to R50bn, it said. How­ever, the JSE is behind the global curve in re­duc­ing the set­tle­ment cy­cle, the news­pa­per said, with coun­tries like In­dia, Hong Kong, Tai­wan and Ger­many al­ready op­er­at­ing on a two-day cy­cle. Set­tle­ments in­volve the pay­ment and de­liv­ery of se­cu­ri­ties.

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