LCQ17: Accelerated settlement for cash market

Following is a question by the Hon Rock Chen and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (October 7): Question: The Hong Kong Exchanges and Clearing Limited (HKEX) published a consultation paper in April this year, proposing to shorten the settlement cycle for the Hong Kong cash market from the current "T+2" to "T+1" (where "T" denotes the trading day), with implementation expected in the fourth quarter of 2027 at the earliest. There are views suggesting that shortening the settlement cycle will have far-reaching implications for the operational processes and system configurations of securities firms, as well as for the trading habits of investors. In this connection, will the Government inform this Council: (1) given that securities firms will be required to complete trade confirmation and fund settlement procedures within a very short time frame following the shortening of the "T+1" settlement cycle, whether the Government has assessed the financial and technical difficulties faced by local small and medium-sized securities firms in upgrading their back-office settlement systems and implemen

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