New ASX CEO Anthony Attia aims to speed up the transition to one-day cash equity trading settlement in Australia, aligning it with global markets. The move was previously shelved due to the exchange's technology overhaul following a series of outages and delays.
Accelerating settlement to T+1 could reduce counterparty risk and free up capital more quickly for market participants, potentially increasing trading efficiency. However, the move requires significant coordination and investment, and its feasibility hinges on the ASX's ability to manage its ongoing technology upgrades and restore market confidence.
SYDNEY, Oct 14 (Reuters) - New ASX CEO Anthony Attia has expressed a desire to accelerate the transition to one-day cash equity trading settlement in Australia, aiming to align the market with global standards. This move was previously deferred to prioritize a significant technology overhaul following a series of operational issues.
Attia stated his willingness to engage with the market and regulators to bring forward the T+1 settlement period, suggesting that there is no longer a justification for the current T+2 system. The US has already implemented T+1 settlement, and exchanges in London, Euronext, and Hong Kong are planning similar transitions in the coming years.
The ASX's comprehensive upgrade of its clearing and settlement system, CHESS, is projected to be completed by 2029. However, Attia believes a faster settlement cycle can be introduced before the full system overhaul is finished. He emphasized the need for ASX to enhance its competitiveness in a rapidly evolving industry.
Attia, who joined ASX six weeks ago after a career at Euronext, takes the helm during a challenging period marked by regulatory scrutiny and investor concerns over CHESS upgrade delays and system outages. He acknowledged the need for ASX to demonstrate tangible changes and improvements to regain trust.
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