Upcoming changes to the settlement of transactions in Europe

Dear Clients,

KIT Finance Europe would like to take this opportunity to notify you of upcoming changes to the settlement of transactions in Europe. At the present time, the settlement period of most stock exchange transactions across European venues is trade date + 3 business days (T+3). The exception to this general standard is a T+2 settlement period which currently exists in the German, Slovenian and Bulgarian markets.

Effective from the trade date 6 October 2014, most European markets will be harmonized to settle transactions in 2 business days (T+2). This change will impact the settlement of stocks, warrants, bonds, certificates and CFDs.

At this time, the following markets have confirmed 6 October 2014 as the migration date and therefore, trades executed prior to trading day 6 October will settle on T+3 while trades on and after trading day 6 October will settle T+2: Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Switzerland, the United Kingdom.

The Spanish authorities have announced fixed income securities will migrate to T+2 for trades of 6 October; however, equities are not expected to migrate until the fourth quarter 2015.

The acceleration of the settlement cycle from three to two business days will contribute to the harmonization of settlement cycles throughout Europe and further reduce operational inefficiencies and risks for cross-border transactions. However, if you are trading in European settled securities and/or European stock options in the above mentioned markets, please note that this change will have an impact on the settlement date for trades and/or exercises executed on and after trading day 6 October 2014.

Please consider this information while planning your work and investment decisions during these days.