#SMSF Alert : ASX reduces trade settlement period from 3 to 2 days

I know that many SMSF Investors manage their cash very carefully to eek out the best possible returns so this is just a warning for those that don’t fund share purchases until the last moment.

On 7 March 2016, the Australian Securities Exchange (ASX) is shortening the trade settlement period for Australian share market trades from three days to two days.

This means that SMSF investors buy and sell trades will settle one business day earlier.

The new Settlement Date will be the Trade Date (T) +2 business days. For example, if the order executes on Tuesday, settlement will take place on Thursday

Source: CommSec Adviser Services

Source: CommSec Adviser Services

When the ASX moves from a T+3 to T+2 settlement period, you will need to ensure that for buy trades, cleared funds are available in their settlement account one day earlier on the morning of T+2. You will also receive proceeds from sell trades one day earlier.

I hope this guidance has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, like on Facebook etc to make sure we get the news out there. As always please contact me if you want to look at your own options. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Leave a comment

Let us know what you think? Have you got a question based on the article? Let me know

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: