HKEX Targets Second-Half 2028 for T+1 Cash Market Switch, Unveils Three-Layer Implementation Plan
HKEX Targets Second-Half 2028 for T+1 Cash Market Switch, Unveils Three-Layer Implementation Plan #
Hong Kong Exchanges and Clearing Limited has published its consultation conclusions on accelerated settlement, targeting the second half of 2028 for the transition of its cash market from T+2 to T+1 settlement. The change would be the first revision to the settlement cycle in more than three decades.
The conclusions, released on 16 October, confirm broad support for the reform while reflecting industry calls for more preparation time. An earlier consultation paper published in April had pointed to a Q4 2027 launch date, but HKEX revised the timetable after reviewing 109 non-duplicated submissions from brokers, custodians, investment managers, industry associations, technology providers and investors.
Although respondents broadly supported the change, many cited the need for more time to overhaul systems and workflows before the new settlement regime takes effect. HKEX said the precise go-live date remains subject to market readiness and regulatory approval, and that a formal announcement will follow.
To manage the transition, HKEX has outlined a three-layer approach. The first layer covers upgrades to its own post-trade infrastructure and clearing operations. The second focuses on developing workflow tools to help market participants, particularly institutional investors, submit settlement instructions within the compressed timeframe. The third covers market ecosystem readiness, with HKEX committing to engage industry associations and convene working groups to coordinate preparation across the participant community.
The exchange urged firms to begin assessing their internal readiness now, ahead of industry-wide testing and rehearsals that it plans to announce separately. Market participants on both the buy and sell sides have been encouraged not to wait for a confirmed implementation date before starting internal workstreams.
The shift to T+1 would bring Hong Kong in line with the United States, Canada and India, which have already made the change. HKEX has said the move would reduce pre-settlement risk, free up collateral, improve capital efficiency and strengthen Hong Kong’s position as an international financial centre. The city has operated on a T+2 settlement cycle since 1992.
HKEX said the consultation conclusions and full respondent feedback are available on its website.
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