Karachi: The National Clearing Company of Pakistan Limited (NCCPL) announced a significant change in the settlement cycle for stock trading, transitioning from T+2 to T+1, effective Monday, February 9, 2026. This shift, coordinated with the Pakistan Stock Exchange Limited (PSX) and the Central Depository Company of Pakistan Limited (CDC), marks a pivotal development in the nation’s capital market infrastructure.
This adjustment comes after a comprehensive preparation phase that included awareness and market testing sessions stretching from October 2025. The transition is set to streamline trading processes, requiring trades executed on or after February 9 to be settled the next trading day. According to information available from the Pakistan Stock Exchange (PSX), a merged clearing will occur on Tuesday, February 10, 2026, for trades conducted on February 6 and February 9, ensuring a smooth transition between the old and new settlement cycles.
The change affects several market types, including Regular and GEM markets, and applies to Deliverable Futures Contracts (DFC) of 30, 60, and 90 days. Meanwhile, Cash Settled Futures (CSF) and Stock Index Futures (SIFC) will continue to settle on a T+1 basis. Market participants have been urged to ensure their systems are ready to accommodate the new timeline, with all front-end and back-office configurations in place to support the revised cycle.
In a circular issued by the NCCPL, market participants were provided with operational guidelines and revised schedules to aid in the transition. The circular also emphasized the importance of reviewing this information thoroughly before the effective date to avoid any disruptions. Furthermore, the NCCPL outlined options for Broker Clearing Members to meet settlement obligations, particularly for transactions not affirmed or rejected by Custodian Clearing Members.
The transition to a T+1 settlement cycle is anticipated to enhance operational efficiency within Pakistan’s financial markets, with PSX transaction charges now to be collected the next business day following trade execution. This move signifies a continued effort to modernize the market infrastructure and align with global standards, ensuring robust risk management and operational readiness across all trading platforms.