Securities Settlement Revolution: Japan’s Second Chapter
28 June 2017
Eiichiro Yanagawa
This report examines the efforts planned and in progress to shorten the equities settlement cycle planned for 2019. This series of reports on the so-called “securities settlement revolution,” will focus on key trends and changes in the securities settlement market of Japan while exploring legacy systems and ecosystem migration as well as the related possibilities of innovation and emerging technologies in this context.
Key research questions
- What does the securities settlement revolution signify?
- What does the shortening of the equities settlement cycle initiative stand?
- What lessons does T+2 undertaken globally hold for the Japanese market?
Abstract
This report provides a definitive analysis of the proposed shortening of the Japan equities trading settlement cycle to T+2 and the expected opportunities for legacy and ecosystem transformation. The report presents the findings of an exclusive Celent survey of interviews with market participants.
Shortening the settlement cycle has the direct benefit of reducing settlement risk. In addition, the resulting increase in liquidity can also be expected to indirectly contribute to maintaining and strengthening the market’s competitiveness internationally.