The Luxembourg Stock Exchange has joined numerous other market infrastructures in announcing that it plans to shorten its standard settlement cycle from October 6, 2014 onwards.
Currently, settlement takes place on T+3 and from October 6 all trades will be settled on a T+2 basis, or two days after a trade. This migration to a shorter settlement cycle will apply to all securities traded on its two markets, the BdL market and the Euro MTF market.
The shortening of the settlement period is in the context of the Central Securities Depositary European Regulation (CSDR). This regulation will take effect in January 2015 and aims to harmonize EU securities settlement cycles.
The head of Listing, Issuers and Markets at the Luxembourg Stock Exchange, Hubert Grignon Dumoulin, says, “A harmonized T+2 settlement cycle throughout the EU will reduce uncertainty and risks and we are pleased to be able to carry out this migration in advance of the CSDR deadline.”
Luxembourg Will Move to T+2 in October
The Luxembourg Stock Exchange has joined numerous other market infrastructures in announcing that it plans to shorten its standard settlement cycle from October 6, 2014 onwards.
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