• West Africa’s regional exchange is exploring a shift from T+3 to same-day settlement

• Global markets are already adopting faster cycles like T+1 and T+0

• Experts say the move could raise efficiency but also needs strong infrastructure

As global stock markets continue to pick up speed, the West African Economic and Monetary Union (WAEMU) may soon follow suit. The Central Depository/Settlement Bank (DC/BR), which operates the region’s stock exchange BRVM, is exploring a major shift in how trades are settled. The goal is to move from the current T+3 cycle—where trades take three business days to settle—to T+0, or same-day settlement.

This would mark a big change. Investors would receive their securities or cash right after the trade, without waiting for days. “It improves market liquidity, reduces counterparty risk, and increases asset turnover,” said a source familiar with the talks.

Around the world, financial markets are moving in the same direction. In the United States, the switch to T+1 became official on May 28, 2024. The European Union and the United Kingdom are working toward the same target by 2027. India is even ahead of the curve—some of its trades already settle on a T+0 basis.

For smaller or emerging markets like those in West Africa, staying at T+3 could soon hurt competitiveness and make them less attractive to investors.

However, speeding up too quickly carries risks. “Going straight to T+0 requires strong infrastructure, real-time payment systems, and tight coordination between banks, brokers, and clearinghouses,” warned a post-trade systems expert.

In many emerging markets, there are still hurdles: slow banking systems, no live interconnections, and outdated settlement setups that rely on paper or partial manual steps. These issues make a direct move to T+0 unlikely unless deep reforms happen first.

Despite the challenges, most financial players agree that this reform could be a game-changer. It might increase trade volumes, raise commission revenues, and help build investor trust—especially among international players.

But all that depends on heavy technical upgrades, regulatory adjustments, and more training for market operators. “You cannot trade speed for safety,” said a market professional based in Abidjan.

Between bold ambition and cautious planning, DC/BR will need to strike a careful balance. A gradual path—moving from T+3 to T+2, then T+1, and eventually to T+0—is seen as the most realistic way forward, according to an asset manager based in Cotonou.