Single day settling of shares traded set to enhance efficiency

Nairobi Securities Exchange.  

Photo credit: File | Nation Media Group

Financial markets are shifting again. From the end of May, shares traded in some of the biggest markets - the United States, Canada and Mexico - will be settled in just one business day, compared with two days after trades are initiated.

This shift to the practice known as T+1 is set to improve market efficiency, reduce risk in markets, increase trading volumes and cut the need for collateral to back trades.

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