Edaa announced a reduction in the settlement period for transactions executed on the Qatar Stock Exchange starting from January 2024
03 Aug 2023News
Edaa announced a decrease in the settlement period for transactions conducted on the Qatar Stock Exchange from (T+3) to (T+2) beginning in January 2024, in a significant step aimed at improving the efficiency of Qatar's capital market. This programme is being undertaken in collaboration with the Qatar Central Bank, the Qatar Financial Markets Authority, and the Qatar Stock Exchange as part of efforts to modernise the processes of the Qatari financial market, accelerate trading activity, and attract securities investments.
The strategic effort aims to reduce the settlement duration for deals completed on the Qatar Stock Exchange from three business days (T+3) to two business days (T+2). This signifies a substantial increase in the speed of trading on Qatar's stock exchange and the transfer of securities ownership, matching with global best practises for financial and cash settlements in markets throughout the world. This initiative's major goal is to boost Qatar's standing in global financial markets.
Sheikh Saif bin Abdullah Al-Thani, interim CEO of Edaa, stated that they are actively working with all stakeholders to achieve certain short-term targets under the supervision of the Chairman of Qatar Financial Markets Authority. He went on to say that their top priority are to develop and apply the most effective techniques to facilitating and simplifying transactions for both domestic and foreign investors, with a heavy emphasis on operational efficiency.
Qatar Depository Company aims to adopt the new settlement period beginning next year (January 2, 2024) to provide financial services businesses, investment institutions, and local and international portfolio managers time to make technical and operational preparations. During this time, the business will work with appropriate partners to offer the required assistance for legislative, regulatory, and technological changes to ensure that settlement operations under the new mechanism run smoothly. This is a significant step that improves the efficacy of Qatar's capital market and decreases the risks associated with a longer settlement time, in accordance with global best practises in regional and international markets.