The CEE Stock Exchange Group (CEESEG) announces it will harmonise the settlement period of all partner exchanges in Budapest, Ljubljana, Prague and Vienna starting 6 October 2014, by adopting the T+2 (two business days) cycle. The shortened time period between the execution of a trade and its settlement covers all securities tradable on the joint trading platform XETRA, settled via the local central security depositories and cleared by the counterparties in Budapest (KELER and KELER CCP), Ljubljana (KDD), Prague (CSD Prague) and Vienna (Central Counterparty Austria – CCP.A and Österreichische Kontrollbank - OeKB). Due to this improvement, exchange trades will be processed and settled faster, while clearing members will benefit from a greater mobility of collateral.
Michael Buhl, joint CEO of the CEESEG explains: “Efficiency in the post-trading infrastructure is very important for market participants. The harmonisation of the settlement period is a first step in our ongoing endeavour to improve the post-trading process and keep its finger on the pulse of markets.”
The CEESEG supports the movement to harmonise settlement cycles in concert with other major European exchanges. With this measure CEESEG anticipates one of the key points of the Central Securities Depository Regulation (CSDR), which requires the implementation of a uniform settlement cycle of two business days by 2015.