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.