SECP moves to speed up trade settlements at PSX

The chairman of the Securities and Exchange Commission of Pakistan (SECP) has announced that the transition from a T+2 to a T+1 settlement cycle for securities traded on the Pakistan Stock Exchange (PSX) will take effect on February 9, 2026.

The announcement was made during a ceremony in Karachi attended by key market participants, including representatives from the PSX, NCCPL, CDC, PMEX, securities brokers, banks, and industry associations.

This shift represents a major milestone in the SECP’s broader agenda to enhance investor protection through increased speed, transparency, and market efficiency. The transition to T+1 is expected to significantly reduce credit and market risk, improve market liquidity, and lower the chances of settlement defaults arising from volatility or operational delays.

The SECP Chairman noted that Pakistan is among the early adopters of the T+1 settlement cycle in the region, following the lead of developed and emerging markets such as the United States, China, Canada, Mexico, and Argentina. He emphasized that this move reflects the growing maturity, readiness, and resilience of Pakistan’s capital markets and their alignment with evolving global best practices.

Under the SECP’s direction, the National Clearing Company of Pakistan Limited (NCCPL) has taken the lead in coordinating the transition in close collaboration with key market stakeholders. An implementation committee -- comprising representatives from SECP, capital market infrastructure institutions (CMIIs), custodian banks, and securities brokers -- was formed to ensure a well-coordinated and seamless shift to T+1. Consultations were also held with foreign investors to address their concerns and align expectations.

In preparation for the transition, the SECP Chairman urged all market participants to review their operational readiness to identify and address potential challenges ahead of time.

To assist in this process, the NCCPL has developed a detailed roadmap and procedural guidance outlining the proposed T+1 mechanism and operational requirements, with the aim of minimizing disruptions and ensuring a smooth rollout.