ASX CEO Pushes for Faster T+1 Trade Settlement in Australia

Australian Securities Exchange (ASX) CEO Anthony Attia is seeking to accelerate the transition to T+1 trade settlement, aiming to strengthen Australia's financial market competitiveness and align its trading infrastructure with global standards.

Attia, who took over as ASX chief executive six weeks ago, said Wednesday that Australia should move away from its current two-day settlement cycle sooner than previously planned. The proposed change would allow cash equity transactions to settle within one business day.

The United States adopted T+1 settlement in 2024, while the London Stock Exchange and Euronext are preparing to implement the system in October 2027. Hong Kong also plans to transition during the fourth quarter of 2027.

Australia has operated under the T+2 settlement framework since 2016. ASX previously considered shortening the cycle in 2024 but postponed the initiative to prioritize its A$445 million ($311.54 million) technology modernization program.

The overhaul involves replacing the Clearing House Electronic Subregister System (CHESS), which has faced significant delays, technical failures and regulatory scrutiny. Although the final upgrade is scheduled for completion in 2029, Attia believes faster settlement could be introduced earlier.

"I think it's too late. So I'm very willing to engage with the market to bring that forward," Attia said, confirming plans to consult regulators and industry participants.

Beyond settlement reforms, Attia wants to modernize ASX's listing operations, attract more companies and rebuild investor confidence following years of operational difficulties.

The former Euronext executive, who spent nearly three decades at the European exchange operator, acknowledged that ASX faces intense competition as financial markets increasingly explore blockchain technology, tokenization and around-the-clock trading.

"Capital is mobile. Capital has no passport," Attia said, emphasizing the urgency of improving ASX's services while addressing existing infrastructure problems.

His leadership follows a difficult period for the exchange, including a 23.6% share price decline during the financial year ended June 30.

A nine-month regulatory investigation also concluded that ASX had placed excessive emphasis on shareholder returns while underinvesting in critical market infrastructure.

Attia said restoring confidence would require measurable improvements rather than promises, stressing that ASX must simultaneously resolve operational weaknesses and pursue growth opportunities to remain competitive internationally.