FILE PHOTO: Traders work on the floor at the New York Stock Exchange in New York City, U.S., April 26, 2024. REUTERS/Brendan McDermid/File Photo
"That New York 5 p.m. to Tokyo, say, seven or eight, is usually what we refer to as a twilight zone," said Bart Wakabayashi, Tokyo branch manager at State Street, a custodian bank involved in settling U.S. stock trades. That's 9 a.m. in Hong Kong and means investors there need to be available well before then to fix problems, or risk failed trades and higher processing fees.
The changes will also leave the U.S. out of step with most other currency and global stock markets, which settle in two days. "However, for securities firms, it's challenging to predict how much individuals will buy, making it difficult to secure dollars in advance."Trades that miss the CLS cut-off can still be submitted as late as 6.30 am CET, or settled outside CLS.