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BSX considers cutting settlement times

Pedro Gurrola-Perez, WFE head of research, left, WFE managing director Nandini Sukumar and BSX president and CEO, and new WFE board member, Greg Wojciechowski (Photograph by Jessie Moniz Hardy)

The Bermuda Stock Exchange is looking at ways for traders to get their money faster.

Some are already pushing for immediate settlements.

Greg Wojciechowski, president and chief executive of the BSX, has revealed the exchange is considering cutting settlement times from two days to one.

“We are going through a detailed analysis internally,” Mr Wojciechowski said.

The BSX will shortly be sending a public consultation paper to stakeholders.

“We will be trying to find out if we are ready from a regulatory and systemic point of view,” he said.

“The market ultimately wants to get to a point where the settlement happens simultaneously on trading, so there is no risk in the system. The impact would be to keep us in line with international norms.”

Mr Wojciechowski spoke to The Royal Gazette on the eve of the four-day World Federation of Exchanges 62nd annual meeting, hosted by the BSX.

WFE managing director Nandini Sukumar said the settlement cycle promised to be a hot topic at the conference.

“I’m happy settlement’s day has come,” she said.

“It’s a topic that is very important, but has often been seen as an arcane discussion. So we’ll have conversations about shortening the settlement cycle.”

She said it is an item that all their members cared about.

Digital assets will also be a point of discussion.

It will be hashed out on Thursday, during the four-day event, in session 3: The Market Infrastructure Universe in 2023 & Beyond (Part 1).

Panellists will include Ms Sukumar, Six Group chief executive Jos Dijsselhof, WFE chairman and CEO of Cboe Global Markets Edward Tilly, and Boon Chye Loh, CEO of the Singapore Exchange.

“It feels like we’re in a place where the digital assets market is maturing,” Ms Sukumar said. “We believe as an industry that as that market matures it is natural to trade those products on an exchange.

“Most products are on an exchange, because you have the virtuous bits that an exchange brings such as liquidity, just-price discovery, transparency, regulated markets and investor protection.

“These are all things which the digital asset market desperately needs at the moment, as the failures to date have demonstrated.”

Another highlight of the meeting will be a fireside chat with Florida governor Jeb Bush on Wednesday, after the event is opened by David Burt, the Premier and Minister of Finance.

This will be the first time Bermuda has hosted the WFE AGM. Organisers expect 250 attendees at the Hamilton Princess & Beach Club venue.

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Published September 19, 2023 at 7:59 am (Updated September 19, 2023 at 7:26 am)

BSX considers cutting settlement times

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