Vienna Stock Exchange announced today that the settlement cycle in Austria will be reduced from T+3 to T+2 as of 6 October 2014. This is particularly valid for Stock Exchange transactions settled against the Central Counterparty CCP.A via the Austrian CSD OeKB. The settlement cycle for OTC transactions is freely negotiable between the counterparties, however it would usually follow the Stock Exchange cycle.
At the same time, the shortened settlement cycle will also be introduced in all exchanges that are members of the CEE Stock Exchange Group, i.e. in Budapest and Prague as Ljubljana Stock Exchange already features T+2 settlement.
With this decision, Vienna Stock Exchange joins the multitude of European Stock Exchanges that will all implement this change at the same time. By taking this measure, CEESEG ensures its compliance with one of the main requirements of the forthcoming EU Central Securities Depository Regulation, which calls for the harmonisation of settlement cycles among the European Exchanges by the beginning of 2015.
Impact on investors: The shorter T+2 settlement cycle, effective from 6 October 2014, will reduce settlement risk and enable quicker release of collateral for Stock Exchange transactions in Austria.