Korea Exchange Plans North America Inspection to Accelerate Settlement Cycle Shortening
Korea Exchange plans to inspect North American markets to accelerate the shortening of the stock trade settlement cycle to T+1.Summary
Korea Exchange (KRX) is planning an on-site inspection in North America to expedite the shortening of the stock trade settlement cycle, aiming to implement a T+1 system. This follows the successful transition to T+1 in the U.S. and Canada in May 2024. KRX Chairman Jung Eun-bo has emphasized the importance of moving to T+1, and a working group of approximately 20 organizations has been preparing for the change since September.
The inspection, coinciding with the "World Federation of Exchanges (WFE) CLEAR 2026" conference in Toronto, will involve meetings with central counterparty (CCP) officials to gather insights and assess preparatory progress. Discussions within the working group have highlighted potential challenges, including concerns about sufficient preparation time for foreign investors due to time zone differences and labor issues related to the system transition.
KRX is also considering inspections in Europe, which plans to adopt T+1 in October 2027, and will monitor developments in other Asian markets like Japan, Hong Kong, and Singapore, given their interconnectedness with Korean equity trading.
(Source：서울경제)