The Korea Exchange announced on Monday that it plans to conduct an on-site due diligence visit with the Korea Securities Depository and the Korea Financial Investment Association to shorten the stock market settlement cycle to T+1.
From April 27 to May 1, they will visit New York City and London to meet with regulatory authorities, key infrastructure organizations, and market participant associations.
During these visits, they aim to discuss the implementation of T+1 settlement, identify potential bottlenecks, develop risk response strategies, and draw policy implications.
In New York, the delegation will engage in in-depth discussions with representatives from DTCC (an infrastructure organization), SIFMA (an investor association), and Citi Bank (a custodian), all of which played pivotal roles in successfully shortening the U.S. settlement cycle. They will explore their implementation processes, success factors, and operational experiences.
In London, they plan to analyze Europe’s T+1 strategy by meeting with the FCA (the regulatory authority), the chair of the T+1 task force (the driving organization), Euroclear (an infrastructure organization), and AFME and ICMA (investor associations). These entities announced their T+1 settlement roadmap last year and are currently pushing for the transition.
A spokesperson for the exchange stated that it will actively incorporate global best practices and policy insights gained from this on-site due diligence into the system design. The goal is to establish a leading-edge settlement process that puts them at the forefront in Asia.