Korea Exchange sets up plan for shorter settlement for stock trading
The Korea Exchange (KRX) on Monday unveiled a plan to shorten a cycle for stock settlement, in what could be a major overhaul to improve efficiency for the equity market. Since 1972, Korea has adopted a stock settlement system that allows investors to settle their transactions two business days after their trades. Under the envisioned plan, investors would be allowed to settle their transactions…
The Korea Exchange (KRX) has announced plans to shorten the settlement cycle for stock trading, potentially revolutionizing the efficiency of the equity market. Currently, investors in Korea have to wait two business days to settle transactions following their trades, a system that has been in place since 1972. The KRX's proposed plan would allow for settlements to occur one business day after trades, a move that would be completed by October 2027 according to relevant authorities.
If executed successfully, the new system could be fully implemented in 2028. The primary objectives of this reform are to shorten the settlement cycle by one day and to minimize settlement risks within the securities market. According to the KRX, this adjustment will enable investors who sell stocks to receive their proceeds the following day, all while streamlining the process through increased automation and standardization.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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