HKEX Sets Roadmap for T+1 Settlement Transition in Hong Kong
Hong Kong Exchanges and Clearing Limited (HKEX) has confirmed plans to move Hong Kong’s securities market to a T+1 settlement cycle in the second half of 2028. The timeline takes market feedback into account and stays subject to market readiness and regulatory approval. HKEX will use a three-layer approach to support the transition. It will work on infrastructure improvements, workflow tools, and industry-wide coordination. It has encouraged market participants to begin preparing their systems and operations early.
T+1 for H2 2028
HKEX published its Consultation Conclusions on Accelerated Settlement for the Hong Kong Cash Market on October 16, 2026. The consultation received 109 non-duplicated responses from brokers, custodians, investment managers, industry associations, technology providers, investors and other stakeholders.
Respondents widely supported the transition. They cited its potential to improve market efficiency, reduce settlement risk, increase capital efficiency and toughen Hong Kong’s competitiveness as an international financial centre. However, implementation will depend on the market’s readiness and regulatory approval.
Three-Layer Approach
HKEX will implement a three-layer framework to prepare the market for T+1 settlement.
1. Upgrading Post-Trade Infrastructure
HKEX will polish its settlement operating model in its market infrastructure. Planned changes include extending Settlement Instruction processing windows, introducing additional free-of-payment settlement runs, and providing risk reports earlier. Also, it will enable real-time Settlement Instruction input and status updates through an Application Programme Interface (API), with real-time matching via the Orion Cash Platform (OCP).
2. Developing Workflow Tools and Services
HKEX will introduce value-added tools, including a Settlement Profile Repository and Status Dashboard. These tools will improve settlement visibility, automation and the quality of Standing Settlement Instructions (SSI) data. HKEX will also keep committing stakeholders on trade allocation, confirmation matching, settlement instruction automation and other use cases that could support vaster adoption. In addition, HKEX will support the Exchange Traded Product (ETP) market’s transition via a platform digitising and standardising ETF primary market creation and redemption activities under the conversion agent model.
3. Coordinating Industry-Wide Readiness
HKEX will work with market participants and industry associations to coordinate preparations in the vaster market. It will facilitate the establishment of industry working groups to work on areas beyond its own infrastructure and operating model. HKEX plans to host industry town halls in 2026 to explain the arrangements and help participants coordinate their end-to-end preparations.
Essential Priorities
The consultation stressed several areas that will require attention during the transition. Market participants will need to manage the inflated operational demands of a shorter settlement cycle and ensure timely securities availability and settlement preparation. Also, they will need to improve automation, maintain accurate settlement data and coordinate with other industry participants.
HKEX has published an Information Paper to support these preparations and plans to provide additional technical specifications on a dedicated webpage. Industry-wide testing and readiness assessments will take place at a later stage to familiarise participants with the new and updated arrangements.
Southbound Stock Connect
Southbound Stock Connect transactions will also move to T+1 settlement, in line with Hong Kong’s settlement arrangements and the home market principle. HKEX will work with China Securities Depository and Clearing Corporation and other stakeholders to support an orderly transition.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the largest exchange groups in the world. It provides a platform for trading various financial instruments, including equities, derivatives, and commodities. HKEX plays a crucial role in linking Chinese markets with international investors.
Wrapping Up
HKEX is targeting the second half of 2028 for Hong Kong’s transition to T+1 settlement. It will support the shift via infrastructure improvements, new workflow tools and coordinated industry preparations.
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