Australia and New Zealand are expected to join a global transition to next-day settlement of stock transactions by 2030, according to a senior banker cited by Bloomberg Markets. The move would align the two nations with major financial centers adopting T+1 settlement cycles.

The shift depends on the readiness of key clearing and settlement systems, the banker noted. Currently, most markets operate on a two-day (T+2) settlement period, but pressure from the U.S. transition to T+1 in 2024 has accelerated global adoption timelines.

Implementation within five years would require upgrades to post-trade infrastructure, regulatory coordination, and industry-wide testing. The Australian Securities Exchange and New Zealand's NZX would need to synchronize with global custodians and clearing houses.

Market participants anticipate reduced counterparty risk and capital efficiency gains from faster settlement. However, operational challenges around cross-border transactions and time zone differences remain significant hurdles for the Asia-Pacific region.