Edaa Reduces Settlement Of Transaction On Qatar Exchange From T+3 To T+2
(MENAFN- The Peninsula) QNA
Doha, Qatar: In a significant development aimed at enhancing the efficiency of Qatar's capital market, Edaa announced a reduction in the settlement period for transactions executed on the Qatar stock exchange from (T+3) to (T+2), starting from January 2024.
This initiative comes in coordination with the Qatar Central Bank, the Qatar financial Markets Authority, and the Qatar Stock Exchange, as part of efforts to modernise the mechanisms of the Qatari financial market, expedite trading activities, and attract investments in securities.
The strategic initiative focuses on reducing the settlement period for trades executed on the Qatar Stock Exchange from three business days following the transaction (T+3) to only two business days (T+2). This represents a qualitative leap in the speed of trading in Qatar's stock exchange and the transfer of ownership of securities, aligning with global best practices for financial and cash settlements in markets worldwide. The primary objective of this initiative is to strengthen Qatar's position in the global financial markets.
Interim CEO of Edaa Sheikh Saif bin Abdullah Al-Thani said that they are actively working in collaboration with all stakeholders under the supervision of the Chairman of Qatar Financial Markets Authority to achieve specific short-term goals. He added that their main priorities revolve around adopting and implementing the most efficient approaches to facilitate and simplify transactions for both local and international investors, with a strong emphasis on maintaining operational efficiency. He noted that this initiative reflects their unwavering commitment to successfully accomplishing these objectives.
Qatar Depository Company intends to implement the new settlement period starting from the beginning of the next year (January 2, 2024) to allow financial services companies, investment institutions, and local and foreign portfolio managers to complete their technical and operational preparations. During this period, the company will engage with relevant parties to provide the necessary support for legislative, regulatory, and technical amendments to ensure the smooth functioning of settlement operations under the new mechanism.
This step represents a positive development that enhances the effectiveness of Qatar's capital market and reduces the risks resulting from an extended settlement period, in line with global best practices in regional and international markets.
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