The Jamaica Stock Exchange Announces Changes to Settlement Cycle and Trading Hours

• May 22, 2024
• 1:57 pm

The Jamaica Stock Exchange (JSE) made an official announcement on May 20, 2024, regarding significant changes to its Settlement Cycle and Trading Hours, which will take effect on Monday, May 27, 2024. The JSE has been working closely with its stakeholders over the past six months to implement the T+1 Settlement Cycle, culminating in a final meeting with brokers and listed companies.

Starting May 27, 2024, the Settlement Cycle for transactions will be shortened from Trading plus two additional business days (T+2) to one business day after trading (T+1). Additionally, the stock market's trading hours will be extended from 3 ½ hours to 5 hours. Trading will now commence at 9:00 a.m. and close at 2:00 p.m., giving traders an additional 1 ½ hours to trade securities.

"We want to inform our members about the measures the JSE and the Jamaica Central Securities Depository (JCSD) are taking to improve the market for the benefit of investors, reduce market risks, and enhance market activities and liquidity," said Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange.

Dr. Street Forrest further explained, "We are attentive to the needs of our investors, listed companies, brokers, and other stakeholders, and we respond to enhance our market's advantages. We strive to align with global best practices and provide opportunities for growth."

She also noted that the move to T+1 and the extended market hours required changes to the JSE's rules, impacting how listed companies and member/dealers provide information to the JSE. She assured the financial community that these changes are in the best interest of all stakeholders.

T+1 Implementation
Mrs. Althea Daley of the JCSD, elaborated on the T+1 implementation. She explained that the Settlement Cycle is the period required to finalize a trade and deliver funds and securities. In a T+1 Settlement Cycle, a trade becomes final on the next business day following the trade date, "T".

Mrs. Daley highlighted several anticipated changes:
• Trades will be final one day after the trade date.
• Member/Dealers will pay and receive payment for securities one day after trading, on behalf of themselves or clients.
• The JCSD will stand in the middle of all transactions to ensure payment and delivery.
• Investors should not be impacted, as the requirement to fund their accounts with Member/Dealers remains unchanged.
• Shares traded can be pledged on T+1.

Benefits
Mrs. Daley emphasized the benefits of shortening the settlement cycle to T+1:
• Harmonization with major markets internationally and counterparties, for example, the USA and Canada.
• Quicker receipt of cash/securities for investors.
• Reduction of JCSD's credit and settlement risk.
• Operational process improvements.
• Increased market liquidity.
• Reduced Foreign Exchange risk in USD transactions.

Listed Companies
• Listing ceremonies on the JSE will now occur at 8:30 a.m. instead of 9:00 a.m.
• News releases to the market will be issued after 2:00 p.m. and before 8:30 a.m.
• The ex-date and the record date will be the same.

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For more information, please contact the Jamaica Stock Exchange.
CONTACT:
Mr. Neville Ellis
Manager - Marketing and Communications
Telephone: 876-967-3271/876-322-0984