HKEX Publishes Discussion Paper on Accelerated Settlement for the Hong Kong Cash Market

On July 16, 2025, Hong Kong Exchanges and Clearing Limited (HKEX) published a discussion paper on the potential for accelerated settlement in the Hong Kong cash equities market, currently operating on a T+2 cycle since 1992. The paper aims to foster dialogue among industry participants regarding the transition to a shorter settlement cycle, such as T+1, which is anticipated to become the norm globally by 2027. The discussion highlights the benefits of enhanced market efficiency and reduced systemic risk, while also addressing challenges like time zone differences and the need for upgraded systems. HKEX encourages market participants to engage in this discussion and provide feedback by September 1, 2025, emphasizing the importance of collaboration for a successful implementation. Resources: https://www.hkex.com.hk/News/Market-Communications/2025/250716news?sc_lang=en