Hong Kong Exchanges and Clearing Limited (HKEX) has confirmed that it intends to shorten the settlement cycle for the city’s cash equities market to T+1, aiming for a go-live in the second half of 2028 provided the market is ready and regulators give their approval.
The decision follows the publication of HKEX’s consultation conclusions on accelerated settlement. The exercise drew 109 non-duplicated submissions from a wide range of participants, including brokers, custodians, investment managers, industry bodies, technology vendors and investors.
Most backed the move, pointing to likely gains in efficiency, lower settlement risk, better use of capital and a stronger competitive position for Hong Kong among global financial hubs.
Respondents also flagged where the pressure points will be. These included coping with heavier operational workloads as the settlement window narrows, making sure securities are available and ready for settlement on time, raising levels of automation and data quality, and the need for coordinated preparation across the whole industry.
To manage the shift, HKEX will deploy a three-tier framework. The first tier focuses on its own post-trade systems and operating model.
Planned changes include longer windows for processing Settlement Instructions, extra free-of-payment settlement runs, earlier delivery of risk reports, and real-time instruction input and status updates through an API, alongside real-time matching on the Orion Cash Platform (OCP).
The second tier covers new workflow tools. HKEX plans to build a Settlement Profile Repository and a Status Dashboard designed to improve visibility over settlement, increase automation and lift the quality of Standing Settlement Instructions (SSI) data. Discussions with stakeholders will continue on areas such as trade allocation, confirmation matching and the automation of settlement instructions.
The exchange operator will also help the Exchange Traded Product (ETP) segment move to T+1 via a dedicated platform that digitises and standardises ETF primary market creation and redemption under the conversion agent model.
The third tier addresses readiness across the wider ecosystem. HKEX intends to work with market participants and industry associations, help set up industry working groups and run townhall sessions during 2026 explaining how end-to-end preparation will be coordinated.
Southbound Stock Connect trades will also move to T+1, in line with the home market principle, and HKEX will work with China Securities Depository and Clearing Corporation and other relevant parties to manage that change.
Alongside the conclusions, HKEX has released an Information Paper and will publish technical specifications on a dedicated webpage. Firms are being urged to start reviewing their systems and operational processes now. Industry-wide testing and readiness assessments will follow later, with the precise switchover date to be confirmed once regulatory approval and market readiness are secured.
HKEX CEO Bonnie Y Chan said, “We at HKEX are pleased to be moving ahead with this significant market infrastructure enhancement, with the broad support from participants reflecting a shared recognition of the strategic importance to move Hong Kong’s securities market to T+1. By reducing settlement risk, improving capital efficiency and strengthening market resilience, T+1 will reinforce the attractiveness and connectivity of Hong Kong’s markets, whilst keeping our infrastructure aligned with the continued evolution of major international markets.”
HKEX CEO Bonnie Y Chan added, “The transition to T+1 is a market-wide transformation that will require coordinated effort across the entire industry. HKEX is committed to delivering the infrastructure, tools and support needed for implementation, whilst working closely with market participants to ensure readiness.
“We sincerely thank all the stakeholders for their very constructive feedback during the consultation process, and we encourage them to start preparing early as we work together towards a smooth and successful transition.”
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