PHILIPPINES: SCCP Marks Successful Migration to T+2 Settlement Cycle

Tuesday September 5 2023

On 4^th September 2023, the Securities Clearing Corporation of the Philippines (SCCP), successfully migrated to a shortened settlement cycle of T+2. This migration is a significant advancement in the domestic capital market and will align the Philippines with major international markets such as the United States, most European Union member states and the major markets in the Asia-Pacific region. 

On August 10^th, 2023, SCCP received the approval of the Securities and Exchange Commission for its request to migrate to the T+2 settlement cycle on August 24th, 2023. 

The launch of the shortened T+2 settlement cycle will reduce various risks of unsettled trades under a T+3 regime and will promote more efficiencies in Philippine capital market. 

On August 29^th, 2023, SCCP settled two batches of trades where Batch 1 comprised of the last T+3 trades executed on August 23^rd, 2023, and Batch 2 comprised of the first T+2 trades which were executed on August 24^th, 2023. All transactions were settled before their respective settlement deadlines. 

Subsequent settlements until September 04^th, 2023, were done before 1:00 p.m., the extended settlement deadline that is in effect until September 11^th, 2023. Starting September 12^th, 2023, the settlement deadline will revert to the 12:00 noon regular deadline. 

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