Hong Kong Exchange (HKEX) Proposed Operation Changes to Support Stock Trade Settlement Cycle to T+1 from Current T+2, Implemented Improvements to Post-Trade Services for Cash Equities Market in Starting from Mid-2025 & Able to Support T+1 Settlement Cycle by End-2025
20th April 2026 | Hong Kong
Hong Kong Exchange (HKEX) has proposed operation changes to support stock trade settlement cycle to T+1 from current T+2. In 2026 February, Hong Kong Exchange (HKEX) will be proposing to reduce stock trade settlement cycle to T+1 from current T+2. In 2025 July, Hong Kong Exchange (HKEX) issued a discussion paper on T+1 settlement cycle for the cash equities market. In 2024 December, the Hong Kong Exchange (HKEX) will implement improvements to post-trade services for cash equities market starting from mid-2025, and able to support T+1 settlement cycle by the end of 2025. Announcement (17/4/26): “Hong Kong Exchanges and Clearing Limited (HKEX) published today (Friday) a Consultation Paper on Accelerated Settlement for the Hong Kong cash market (Consultation Paper). The paper outlines the proposed operational model to shorten the settlement cycle for Hong Kong’s cash market to T+1 from the current T+2, and seeks public comment. The Consultation Paper follows HKEX’s Discussion Paper published in July 2025 that initiated a market wide dialogue on accelerated settlement. Feedback received from a broad range of stakeholders indicated overall support for Hong Kong’s cash market to move to T+1, as key markets around the world continue to transition to shorter settlement cycles. Proposed T+1 settlement model – HKEX has proposed certain amendments to the existing operating model covering the cash market trade lifecycle, while trade execution arrangements would remain unchanged. The proposals aim to facilitate earlier completion of post trade activities on the trade execution date (T), so that market participants can better prepare for settlement on the following business day (T+1). These measures include adjustments to the timing of clearing procedures, as well as settlement-related processing to facilitate timely and orderly settlement under a shortened cycle. However, the existing delivery versus payment framework and batch settlement structure will remain unchanged. Due to the accelerated post trade operation timeline, HKEX also proposes to extend service windows for settlement-related activities such as settlement instruction input and matching, providing participants with greater flexibility to complete their post trade processing ahead of settlement. The existing clearing risk management framework would continue to apply, with certain timelines adjusted to reflect the shorter settlement cycle. Based on feedback from the Discussion Paper, HKEX will consider developing a tool that enhances operational efficiency for institutional market stakeholders, including investment managers, custodians and brokers, under the T+1 settlement model. Scope and other considerations – The proposed T+1 settlement cycle would apply to secondary market exchange trades, including equities, exchange-traded products, structured products and debt securities, as well as the physical settlement of equities arising from stock options exercise and assignment. Initial public offerings and Stock Connect Northbound trading would continue to operate based on their existing settlement timetables. A shorter settlement cycle will require adjustments across various downstream processes and related market activities. HKEX is also seeking market views on how these processes can be adjusted. In addition, HKEX encourages market participants to review their securities- and money-side activities, such as securities borrowing and lending, funding and foreign exchange arrangements, in order to support the proposed T+1 settlement cycle. Implementation – HKEX will publish technical specifications to help market participants make necessary system enhancements, as required, in due course. Subject to market readiness and regulatory approval, the transition to a T+1 settlement cycle in the cash market is intended to take place in the fourth quarter of 2027. Given this indicative timeline, HKEX encourages market participants to begin assessing their operational readiness, systems and processes as soon as practicable. Upon finalising the T+1 framework, HKEX will also make subsequent amendments to its Exchange Rules, Clearing House Rules and Listing Rules. More details will be announced in due course. The consultation period will close on Monday, 18 May 2026. Interested parties are invited to respond to the Consultation Paper by filling out and submitting a questionnaire on the HKEX website.
“ Hong Kong Exchange (HKEX) Proposed Operation Changes to Support Stock Trade Settlement Cycle to T+1 from Current T+2, Implemented Improvements to Post-Trade Services for Cash Equities Market in Starting from Mid-2025 & Able to Support T+1 Settlement Cycle by End-2025 “
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HKEX Chief Executive Officer, Bonnie Y Chan: “HKEX is fully committed to futureproofing Hong Kong’s market infrastructure and ensuring that our standards continue to align with global developments and best practice. We are delighted to be consulting the market on our proposed operational model for a T+1 settlement framework. Our sincere thanks to all stakeholders for responding to our Discussion Paper in support of accelerated settlement. Their feedback and insights have been crucial in helping us shape the proposed T+1 settlement framework, as we progress closer towards implementation. Moving to T+1 is a key step forward as we further elevate the competitiveness of Hong Kong’s markets — making transactions safer, faster, and more robust, whilst laying the foundation for more infrastructure enhancements and innovations. We invite the industry to share their feedback and start preparing for this important transition, joining us to build a stronger, more vibrant marketplace, together.”
Hong Kong Exchange (HKEX) to Propose to Reduce Stock Trade Settlement Cycle to T+1 from Current T+2, Implemented Improvements to Post-Trade Services for Cash Equities Market in Starting from Mid-2025 & Able to Support T+1 Settlement Cycle by End-2025
27th February 2026 – Hong Kong Exchange (HKEX) will be proposing to reduce stock trade settlement cycle to T+1 from current T+2. In 2025 July, Hong Kong Exchange (HKEX) issued a discussion paper on T+1 settlement cycle for the cash equities market. In 2024 December, the Hong Kong Exchange (HKEX) will implement improvements to post-trade services for cash equities market starting from mid-2025, and able to support T+1 settlement cycle by the end of 2025. HKEX (16/7/25): “Hong Kong Exchanges and Clearing Limited (HKEX) today (Wednesday) published a discussion paper examining the accelerated settlement for the Hong Kong cash equities market, aiming to lead market-wide discussion and build consensus with industry participants on how and when to move to a shorter settlement cycle for Hong Kong. HKEX’s cash market has been operating under a T+2 settlement cycle since 1992, while other cash markets globally have also been gradually shortening to a T+2 cycle over the past two decades. More recently, many markets have moved or are considering moving to a T+1 or faster settlement cycle. By the end of 2027, up to 88 per cent1 of cash equities globally by trade value will be in T+1 or T+0 markets, according to HKEX’s analysis based on World Federation of Exchanges and global exchange statistics. The discussion paper outlines the potential benefits and challenges of shortening the current T+2 settlement cycle in Hong Kong, referencing the experience of other jurisdictions during their transition journey, offering the basis for all stakeholders to join an informed discussion. As the discussion paper shows, transitioning to T+1 in Hong Kong brings both benefits and challenges. Potential benefits include enhanced market efficiency, reduced systemic risk, and closer alignment with global markets. At the same time, a transition also presents challenges, particularly for market participants navigating time zone differences, foreign exchange transactions, and shorter post-trade timelines. To adapt, market participants would need to upgrade systems, automate processes and coordinate across the market ecosystem to maintain efficiency and stability. For the avoidance of doubt, the settlement cycle acceleration under discussion covers secondary transactions in the Hong Kong Cash Market. Primary transactions such as Initial Public Offerings aren’t included in this discussion. HKEX will actively engage market participants and stakeholders in this discussion and welcome their feedback. Industry participants are encouraged to read this paper, consider their existing circumstances, and respond on the topics of discussion by submitting their feedback through this portal by 1 September 2025 (Monday).”
Hong Kong Exchange (HKEX) Issues Discussion Paper on T+1 Settlement Cycle for Cash Equities Market, Implementing Improvements to Post-Trade Services for Cash Equities Market in Starting from Mid-2025 & Able to Support T+1 Settlement Cycle by End-2025
17th July – The Hong Kong Exchange (HKEX) has issued a discussion paper on T+1 settlement cycle for the cash equities market. In 2024 December, the Hong Kong Exchange (HKEX) will implement improvements to post-trade services for cash equities market starting from mid-2025, and able to support T+1 settlement cycle by the end of 2025. HKEX (16/7/25): “Hong Kong Exchanges and Clearing Limited (HKEX) today (Wednesday) published a discussion paper examining the accelerated settlement for the Hong Kong cash equities market, aiming to lead market-wide discussion and build consensus with industry participants on how and when to move to a shorter settlement cycle for Hong Kong. HKEX’s cash market has been operating under a T+2 settlement cycle since 1992, while other cash markets globally have also been gradually shortening to a T+2 cycle over the past two decades. More recently, many markets have moved or are considering moving to a T+1 or faster settlement cycle. By the end of 2027, up to 88 per cent1 of cash equities globally by trade value will be in T+1 or T+0 markets, according to HKEX’s analysis based on World Federation of Exchanges and global exchange statistics. The discussion paper outlines the potential benefits and challenges of shortening the current T+2 settlement cycle in Hong Kong, referencing the experience of other jurisdictions during their transition journey, offering the basis for all stakeholders to join an informed discussion. As the discussion paper shows, transitioning to T+1 in Hong Kong brings both benefits and challenges. Potential benefits include enhanced market efficiency, reduced systemic risk, and closer alignment with global markets. At the same time, a transition also presents challenges, particularly for market participants navigating time zone differences, foreign exchange transactions, and shorter post-trade timelines. To adapt, market participants would need to upgrade systems, automate processes and coordinate across the market ecosystem to maintain efficiency and stability. For the avoidance of doubt, the settlement cycle acceleration under discussion covers secondary transactions in the Hong Kong Cash Market. Primary transactions such as Initial Public Offerings aren’t included in this discussion. HKEX will actively engage market participants and stakeholders in this discussion and welcome their feedback. Industry participants are encouraged to read this paper, consider their existing circumstances, and respond on the topics of discussion by submitting their feedback through this portal by 1 September 2025 (Monday).”
HKEX CEO, Bonnie Y Chan: “As a market operator, HKEX is fully committed to supporting the continued modernisation of Hong Kong’s financial market infrastructure, ensuring that our financial ecosystem remains robust and fit for purpose. We are therefore delighted to be launching a discussion paper to lead the conversation on how and when to move to a shorter settlement cycle for our cash equities market … … In a rapidly evolving global market landscape, there is urgency to seek a way forward, and we must as a financial community collaborate and act decisively to implement necessary enhancements. By leading the conversation, we hope to build consensus and develop a detailed implementation timeline that incorporates comprehensive stakeholder feedback. We encourage market participants to actively participate in this discussion, and we look forward to hearing from you.”
Notes:
1. Markets operating under a T+1 or T+0/T+1 basis currently include Mainland China, the US, Canada, Mexico, Argentina and India, and this is expected to also include the European Economic Area, the UK, and Switzerland by 2027.
HKEX – Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange. As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets. HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
Hong Kong Exchange to Implement Improvements to Post-Trade Services for Cash Equities Market in Starting from Mid-2025 & Able to Support T+1 Settlement Cycle by End-2025
13th December 2024 – The Hong Kong Exchange (HKEX) will implement improvements to post-trade services starting from mid-2025, and able to support T+1 settlement cycle by the end of 2025. HKEX (12/12/24): “Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Thursday) that it is embarking on a multi-year post-trade services enhancement programme for its cash equities market, reflecting the Group’s ongoing commitment to build future-ready market infrastructure. Starting from mid-2025, new features will be progressively added to the Orion Cash Platform (OCP), HKEX’s integrated cash market platform, to provide more advanced, reliable and efficient post-trade services for the securities market. New features include automated post-trade report download and information exchange, as well as enabling real-time transmission and processing of trade data, related positions and reference data, and real-time matching of settlement instructions. As part of the enhancement programme, HKEX’s post-trade systems will become technically ready to support a T+1 settlement cycle by the end of 2025, though any future changes to Hong Kong’s settlement cycle will be subject to extensive market engagement. HKEX will progressively introduce these new post-trade features and services on OCP, with respective release dates to be announced in due course. Meanwhile, HKEX will continue to provide core post-trade processing through its Central Clearing and Settlement System (CCASS). HKEX will engage with stakeholders and market participants on the future of CCASS as the new OCP post-trade features progressively become available … … Earlier this year, HKEX also announced plans to develop the new Orion Derivatives Platform (ODP) for Hong Kong’s derivatives market. The ODP and OCP development demonstrate the Group’s strategic focus on building the long-term resilience of Hong Kong’s market infrastructure with technology developed in-house. For more details on HKEX’s post-trade services enhancements scheduled for 2025 – 2027, please refer to the circular published today.”
HKEX Chief Executive Officer, Bonnie Y Chan: “At HKEX, we are committed to the long-term vibrancy of Hong Kong’s capital markets through ongoing investment in our technology and market infrastructure. We are pleased to be launching the modernisation programme for our cash market platform, developing the capabilities for real-time and more efficient post-trade services. The ongoing development of OCP will ensure that our markets remain well-positioned for future opportunities as they continue to expand in breadth and diversity, strengthening Hong Kong’s status as an IFC.”
HKEX Group Chief Information Officer, Richard Leung: “Platform development is a core part of HKEX’s strategy to futureproof its business and its markets. We are delighted to adopt modular architecture to introduce new post-trade features, in order to provide maximum flexibility for market adoption. We look forward to engaging and collaborating with our market participants on this infrastructure advancement journey, as together we work to enhance the competitiveness of Hong Kong’s capital markets.”
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