Market regulator Securities and Exchange Board of India (SEBI) on December 10 issued a circular on enhancement in scope of optional T+0 rolling settlement cycle in equity cash markets.

SEBI said optional T+0 settlement cycle shall be made available to top 500 scrips in terms of market cap as on December 31, 2024.

All stock brokers are allowed to participate in optional T+0 settlement cycle, added SEBI.

Stock brokers are permitted to charge differential brokerage for T+0 and T+1 settlement cycles, within regulatory limit, the regulator said.

T+0 settlement cycle refers to a mechanism wherein the shares are credited in the investor’s account on the day of trade itself. In a sell transaction, the money would be credited in the account on the same day.

SEBI also mentioned the mechanism for block deal window in T+0 settlement cycle.

"A mechanism for Block Deal window shall be put in place by the Stock Exchanges under the optional T+0 settlement cycle. The Block Deal window under the optional T+0 settlement cycle shall be available only for the morning session during 8:45 am to 9 am in addition to the existing Block Deal windows of 8:45 am to 9 am and 2:05 pm to 2:20 pm for T+1 settlement cycle. The trades in optional T+0 block window session will be settled on T+0 settlement cycle," said SEBI.

"To ensure smooth implementation, the MIIs shall publish the operational guidelines (including mechanism for trading, clearing and settlement, risk management, etc.) and Frequently Asked Questions (FAQs) along with the list of eligible scrips and list of Qualified Stock Brokers (QSBs) for the optional T+0 settlement cycle and disseminate the same on their respective websites," added SEBI.

The Canadian Securities Administrators (CSA) have published a notice to clarify how securities legislation applies to the use of artificial intelligence (AI) systems in capital markets.

The notice, titled “Staff Notice and Consultation 11-348: Applicability of Canadian Securities Laws and the Use of Artificial Intelligence Systems in Capital Markets,” also seeks stakeholder input on how to adapt current regulatory approaches to address the rapid evolution of AI.

“The rapid evolution of AI provides opportunities and challenges for Canadian capital markets,” said Stan Magidson, chair of the CSA and Chair and CEO of the Alberta Securities Commission. “Our goal is to support responsible innovation that benefits investors and market participants, while addressing risks associated with the use of these systems.”

The notice offers guidance to registrants, reporting issuers, marketplaces, and other market participants using AI systems. It emphasizes the importance of transparency, accountability, and risk mitigation to maintain a fair and efficient market. The CSA underscored that the guidance is rooted in existing securities laws and does not impose new legal requirements.

Grant Vingoe, CEO of the Ontario Securities Commission, emphasized the CSA’s commitment to fostering trust and competitiveness in Canadian markets, statring “We are committed to providing market participants with clarity on the responsible use of AI systems to ensure Canadian capital markets remain competitive and secure.”

“This consultation is an important step in fostering trust and transparency as AI systems continue to reshape the capital markets landscape,” Vingoe added.

The CSA is seeking feedback on the evolving role of AI in capital markets and potential regulatory adjustments. Consultation questions are available on CSA members’ websites, and the comment period is open until March 31, 2025. According to CSA, stakeholder responses will help shape future regulatory initiatives to ensure AI systems are integrated responsibly into the capital markets framework. By providing clarity and soliciting input, the CSA aims to balance the benefits of AI innovation with the need to address associated risks.

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) the launch of a Fund Repository on its Integrated Fund Platform (IFP), marking a significant step forward in enhancing transparency of fund information for Securities and Futures Commission (SFC) authorised funds in Hong Kong.

The Fund Repository will provide streamlined access to essential information on over 2,000 SFC-authorised funds. The initiative will support the long-term growth of the fund industry by enhancing information transparency and building investor knowledge and understanding of the fund universe.

HKEX Co-Head of Markets, Glenda So, said: “We are delighted to announce the launch of the Fund Repository, part of HKEX's Integrated Fund Platform that will support Hong Kong's fund industry ecosystem. By providing easier access to fund information, the Fund Repository will help investors make informed fund investment decisions and enable market participants to serve their clients more effectively. HKEX is committed to facilitating the development of an efficient, diverse and vibrant fund distribution ecosystem, bolstering Hong Kong's position as a global wealth management hub.”

Development work is continuing on other key functionalities of the IFP, including a business platform and a communications network, to facilitate order routing and nominee services.

With support from the HKSAR Government and the SFC, the IFP aims to enhance the fund distribution ecosystem. HKEX has been collaborating with regulators and industry participants and will continue to seek input and feedback from stakeholders to guide the development of the IFP. HKEX will share further details on the platform's development in due course.

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today the Final Report with proposals for amendments related to equity transparency under the Markets in Financial Instruments Directive (MiFID II). Through its proposals ESMA aims to contribute to a more informative pre-trade and post-trade transparency regime.

The report includes proposals for the amendment of the regulatory technical standards (RTS) as well as technical advice (TA) on the provisions on equity transparency, covering:

• Changes to the definition of a liquid market for equity instrument;
• Specification of information to be disclosed for pre-trade transparency purposes, which is also of relevance for the equity consolidated tape;
• Review of the pre-trade transparency requirements for Systematic Internalisers (SIs), including the calibration of two quoting sizes.; and
• Post-trade transparency reports, including flags for equity instruments.

In addition, the RTS and TA include changes related to the discontinuation of reporting of data for the purpose of transparency calculations. Going forward, ESMA will perform these calculations using transaction data reported under Article 26 of MiFIR. By removing this reporting obligation and the reuse of the other already reported data, ESMA aims at reducing the reporting burden for market participants.

Similar amendments will be proposed in early 2025 for the volume cap mechanism.

Next steps

The final report with the draft RTS has been submitted to the European Commission for adoption