T+0

T+0

(Transaction plus 0 days) In financial processing, the ability to complete a stock transaction in the same day it was made, which includes settlement, payment and transfer of ownership. This remains a long-term goal. By 2004, an equity stock trade was "down" to T+3 status, a significant reduction from even the 1990s. Yet, many procedural hurdles remain in the process so that T+0 is not expected in the near future.
References in periodicals archive ?
The morning trading session in US dollar with settlements T+0 (immediate settlement) and T+1 (settlement will be implemented in a day) in tenge, euro with settlements T+0 in tenge and US dollars, Chinese yuan with settlements T+0 in tenge ended on Kazakhstan Stock Exchange (KASE).
US dollar weighted average rate with settlements T+0 in tenge made up KZT 322.
Chinese yuan weighted average rate with settlements T+0 in tenge made up KZT 51.
The Egyptian Financial Supervisory Authority (EFSA) has decided to reintroduce T+0, or same day settlements on the Egyptian Exchange (EGX) starting from Thursday 23 May
T+0 settlements give traders the option to sell or buy all or part of the shares which they have already bought or sold during the same trading session.
Halting T+0 settlements was a precautionary measure that EFSA introduced after the 25 January Revolution in order to shore up capital on the nation's stock exchange after its 55-day closure during and after the revolution.
The reason is that T+0 is more like gambling than trading," he added.
Economist Ahmed Al-Outafy predicted that the reintroduction of T+0 settlements will increase EGX capital by 15%.
The T+0 rule was scrapped on February 8 and other measures were imposed in a bid to calm volatile trading in the wake of the uprising.
We need stability in prices to reinstate the T+0 system,"
A lot of international institutions prefer the (T+2) system," Sharkawy said about the demand for a switch back to T+0.
Some traders say a return to T+0 would reduce risk perceptions as investors would be able to exit the same day.