ASX media release - ASX settlement moves to T+3

27 January 1999

The Australian Stock Exchange is reducing the time it takes to settle equities transactions.

Currently, share transactions are settled five days after the trade date (known as T+5). As of Monday, 1 February 1999, the settlement date will be changed to occur three days after trade date (T+3).

This means that a seller will need to deliver the sold securities on the third business day after the trade date. The buyer will likewise have an obligation to pay for the securities on the third business day after the trade date.

According to ASX Managing Director Richard Humphry, "The change is part of a global program to minimise counterparty risk and market exposure associated with longer settlement periods.

"While these risks are less significant in Australia because of the protection offered by ASX’s National Guarantee Fund, it is still important for the Australian market to maintain international parity."

Specific arrangements have been made for the transitional period. These are:

  • Trades executed on 29 January 1999 (the last day of T+5), will settle on Friday, February 5.
  • Trades executed on 1 February (the first day of T+3), will settle on Thursday, February 4.
  • Trades executed on 2 February will settle on Friday, February 5.
  • Trades executed on 3 February will settle on Monday, February 8.


To facilitate the change to T+3, ASX asked its listed companies to decertificate their share registers by the end of 1998. That involved eliminating share certificates and automatically moving shareholders’ current holdings to an electronic share register.

This move has been completed and share certificates are no longer valid. Now, instead of receiving a share certificate, share holders will receive a holdings statement similar to a bank statement.

The electronic registration system means that investors who wish to buy or sell shares will not be required to physically deliver their shares to a brokers’ office for settlement.

For more information please see What's New.