The JSE Announces Changes to Settlement Cycle and Trading Hours

The Jamaica Stock Exchange (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.
The official announcement was made on May 20, 2024, regarding significant changes to its settlement cycle and trading hours, which will take effect on Monday, May 27, 2024. On that day, 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 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.
Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange, noted that these are 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.
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.”
Althea Daley of the JCSD, elaborated on the T+1 implementation, highlighting that the settlement cycle is required to finalise 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.
Some of the benefits she added include; the harmonisation 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 and reduced foreign exchange risk in USD transactions.

(Source: JSE)