T+2 Settlement Cycle FAQs

1. What is T+2 settlement cycle in the Philippine Stock Exchange?

The T+2 settlement cycle refers to the timeframe within which trades executed on the Philippine Stock Exchange (PSE) must be settled. "T" stands for the trade date, while "+2" indicates that settlement will occur two trading days after the trade date.

2. How will T+2 affect my buy and sell transactions?

• For BUY Transactions:

1. Online Accounts - If your buy order executes on a Monday, the settlement of trade will be done on a Wednesday. Earmarking of funds remains to be at Trade Date.

2. Broker-assisted Accounts - If your buy order executes on a Monday, the settlement of trade will be done on a Wednesday. Payment for the shares should be made two (2) days after.

• For SELL Transactions:

Proceeds of the sale remains to be available as ‘Buying Power’ at Trade Date, and will be available for withdrawal two (2) days after. To illustrate:

3. When will the change from T+3 to T+2 settlement period become effective?

The change will be effective on trades that will be executed starting August 24, 2023. Hence, there will be 2 Trade Dates that will settle on Aug 29, 2023:

• Aug 23, 2023 trades - the last trade date under T+3 settlement

• Aug 24, 2023 trades - the first trade date under T+2 settlement, taking into account National Heroes’ Day on August 28.

*Note that BDO Securities Customer Support will send communication should there be any changes in the target date of implementation. 

4. Will I still be able to use unsettled proceeds to purchase other securities before settlement?

Yes, the proceeds will become part of your Buying Power, within the same day that the trade has been executed, and you will be able to use it to buy other securities in the market.

Cycle	BUY / SELL Transaction
	Transaction Date	*Settlement Date
T+3	Monday	Thursday
T+2	Monday	Wednesday

* Settlement date may adjust due to holidays and non-settlement dates as may be announced by the Government, PSE, SCCP, PDTC, SEC or any regulatory body.

 

5. Why is there a settlement period for stock trades?

The settlement period allows time for various processes, such as verifying trade details and confirming the availability of funds or securities.

6. Does the T+2 settlement period apply to all securities traded on the PSE?

Yes, the T+2 settlement period applies to all securities traded on the Philippine Stock Exchange. 

7. Are there exceptions to the T+2 settlement period?

Yes, there are some exceptions to the T+2 settlement period. These include public holidays, non-trading days, or extraordinary circumstances that may disrupt the regular settlement process. In such cases, the settlement period may be extended or adjusted based on the exchange's guidelines.

8. Where can I find more information about the new T+2 settlement period in the PSE?

For more detailed information about the new T+2 settlement period in the Philippine Stock Exchange, you can refer to the PSE's official website at www.edge.pse.com.ph.