
The Stock Exchange of Mauritius SEM and the Central Depository & Settlement CDS are set to implement an extension of trading hours and a reduction of the settlement cycle to T+2, starting in April. This move aims to align with international market practices and enhance market liquidity. The continuous trading session at SEM will be prolonged by one hour, running from 9:30 AM GMT+4 to 3:00 PM, compared to the current 10:00 AM to 2:30 PM, pending regulatory approval. The long-term goal is to further extend this session to 3:30 PM. This extension will provide investors in different time zones with prolonged real-time access to the Mauritian stock exchange platform, improving trading opportunities. The CDS emphasizes that counterparty risk remains well-managed through mechanisms like settlement limits, the Guarantee Fund, and capital adequacy requirements, with no settlement defaults recorded since operations began. To further support liquidity, the CDS has already introduced Turnaround Trading, allowing investors to resell shares bought earlier on the same day. The reduction of the settlement cycle from T+3 to T+2 is a necessary evolution as investors increasingly favor faster settlement. This transition will tighten existing processes while maintaining sufficient margins for transaction affirmation, financing, and settlement. Under the T+2 system, custodians must confirm client transactions by 2:00 PM GMT+4 on day T+1, requiring close coordination among investors, investment in
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This summary was AI-generated from a story originally published by Le Mauricien.