Poland's central securities depository (KDPW) is to change its settlement cycle from T+3 to T+2 as of 6 October 2014.
The KDPW has stated that it expects the shorter settlement cycle to “have a positive impact on KDPW and KDPW_CCP participants as well as investors.”
Having transactions close within a shorter period of time will allow investors to receive securities (buyers) and cash (sellers) sooner.
The new settlement cycle will also have an impact on processes of the exercise of rights attached to securities, which will be transferred 1 day earlier than before.
Shares, rights to shares, depository receipts, exchange-traded funds and investment certificates will all be subject to the new T+2 settlement cycle.
It is hoped by the KDPW that, for dual-listed companies, a settlement cycle on the Polish market that is identical to that used in most European markets will have a positive impact on the record dates of payments from securities, in particular dividends.
Securities will be marked as “ex-date” on the same day on the Polish market and on foreign trading platforms.
