SGX Reschedules Implementation Of New Settlement Processes

Singapore Exchange Limited announced that it (SGX) will be rescheduling the implementation of the new settlement processes and refined penalty framework from 6 November 2009 to a later date. The subsequent implementation of buy-in for failed securities due on T+3, which was scheduled for 30 November 2009, is also under review. The revised dates will be announced in due course after consultation with market participants.

The rescheduling is due to an isolated incident experienced today in the pre-settlement matching system (PSMS). This incident affected settlement of less than 1% of institutional trades. Settlement for retail trades is not affected. The trading and settlement of securities remain orderly in the marketplace. This incident is unrelated to the changes planned for implementation on 6 November 2009*. SGX is working to resolve the matter expeditiously.

As a prudent measure, the rescheduling of the implementation of the new settlement process will allow more time for the full stability of the PSMS environment.

*You may wish to refer the press release, “SGX improves securities settlement to reduce incidence of failed trades”, issued on 9 October 2009.