The local stockbroking and trading community is hoping for a smooth transition to a two-day settlement cycle, after signing off on a   March start date for the changeover.  
As flagged by Street Talk, following a period of testing the industry will adhere to a proposed   March 7 start for the shortened two-day settlement cycle.
That is a one-day reduction from the current three-day period to clear and settle trades and aligns Australia with markets including those in Hong Kong and Europe. The two-day cycle is referred to as T+2. 
Industry representatives across equities and debt markets and the ASX and Chi-X signed off on the move last week, following a period of testing that kicked off in   August. New Zealand's exchange expects to change on the same day. 
The switch will probably spell an end to the use of cheques for equities trading and will also be monitored closely for any spike in failed trades. Australia's time zone relative to other markets was one of several challenges in managing a transition. 

Wide impact
CommSec's managing director Paul Rayson noted the bank's project to prepare for the change, while not difficult, affected all its systems and processes.
"It's been quite a widespread project across our business," he said, also noting a change-management program and wide communication to customers. 
Mr Rayson said there were transition procedures in place and that CommSec would refund any inadvertently failed T+2 trades for a period of months after the   March start.
An ASX spokesman noted readiness from more than 100 participants including brokers, clearers, system vendors and other market operators.
BNP Paribas' acting head of clearing and custody services Mark Wootton said Australia had drawn on the process in Europe and the local industry was well prepared. 
"We've used the European experience to put some of it in context," he said. "Everyone is on high alert and well educated."
Mr Wootton is also chairman of the Australian Financial Markets Association's T+2 committee.
"The experience is that everything is going to work, but if there are any blips we'll bring that back to the committee," he added. 
The local industry's move comes after a shift by Europe in 2014 to a two-day settlement cycle. In Asia Pacific, Hong Kong is already at T+2, Singapore has committed to a changeover and and Japan's transition - in stages - will probably happen well after a slated move by the US in 2017.]

Savings benefits
"Shortening the settlement period by one business day creates capital and margin savings for industry, and a faster settlement of transactions for investors," the ASX said on its website. "It also lowers systemic risk for the market as a whole by reducing counterparty risk for individual investors, participants and the clearing house.
"ASX's adoption of T+2 settlement will keep Australia aligned with leading settlement practices around the world."
But the timing for Australia's transition is interesting as it also comes amid debate about blockchain and near real-time settlement. ASX is working with Digital Asset Holdings on a "distributed ledger" that may replace the systems provided through its CHESS platform. But a decision on the technology won't be made until mid-2017.
Mr Rayson said he believed blockchain had a lot of potential. 
"It could transform efficiency and security," of trading activities.