SGX: T+2 is not the end of contra trading

[SINGAPORE] The Singapore Exchange (SGX) remains on track to shift from a T+3 settlement period to T+2 - possibly by 2016 - but when it does, it does not mean the end of "contra" trading.

More importantly, the industry could eventually see settlement decentralised to individual broking houses, with each responsible for its own technology systems.

In response to a BT query, Nico Torchetti, SGX senior vice-president and head of depository services, said: "We will work closely with brokers to enable efficient and flexible choices for investors to securely participate in the markets for those with different needs and different time horizons.

"This includes the implementation of collateralisation requirements which does not preclude contra, that is, net settlement with a broker,…