PAKISTAN: NCCPL Roadmap to T+1 Settlement Cycle

Wednesday January 17 2024

On 16^th January 2024, National Clearing Company of Pakistan Limited (NCCPL) shared its vision for transition to a shorter settlement cycle of T+1 from the existing T+2 settlement cycle. Further, all the concerned stakeholders were requested to share their views and recommendations on the proposed transition to shorter settlement cycle with NCCPL.

In this regard, NCCPL has not received recommendations and comments from majority of the stakeholders. Any such transition will have significant impact on operational and technical landscape of our securities market and at the same time such change could not be withheld for a long period to ensure compatibility with the regional / global capital markets that are making continuous progress towards achieving this milestone.

NCCPL on its part, has reached out to a limited audience through different forums to gather information regarding the perceived impact of transition to a shorter settlement cycle from T+2 to T+1 and it came across various matters that needs to be deliberated and resolved before its implementation such as time available for non-exchange transaction affirmation process to Custodian Clearing Members, operating hours of leverage markets, mark-to-market loss collection and disbursement for ready/ derivative contract.

All the concerned stakeholders are again requested to share their recommendations on the matter by January 20, 2024. It may please be noted that the prescribed timeline will be strictly observed as NCCPL intend to initiate a pilot run of the T+1 settlement cycle by April 15, 2024.

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