PSX T+1 settlement cycle preparations have entered a critical phase as the Pakistan Stock Exchange (PSX), in collaboration with the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan Limited (CDCPL), announced an integrated Grand Mock Session scheduled from January 9 to January 13, 2026.
This large-scale market simulation aims to assess system readiness, operational efficiency, and participant preparedness ahead of the formal rollout of the shorter T+1 settlement cycle, a major reform designed to enhance market liquidity, reduce counterparty risk, and align Pakistan’s capital markets with global best practices.
Why the PSX T+1 Settlement Cycle Matters
The transition to the PSX T+1 settlement cycle marks a significant evolution from the existing settlement framework. By shortening the settlement period, trades will be completed more quickly, improving capital efficiency and strengthening investor confidence.
This shift is expected to:
• Reduce settlement risk
• Improve cash flow efficiency for brokers and investors
• Enhance overall market transparency
• Bring PSX closer to international settlement standards
NCCPL’s Role in the PSX T+1 Settlement Cycle Testing
According to a formal notice issued by NCCPL to the Pakistan Stock Exchange, the Grand Mock Session follows earlier preparations outlined in Circular No. NCCPL/CM/DECEMBER-25/14, dated December 18, 2025. The circular detailed the roadmap for comprehensive market testing required before implementing the PSX T+1 settlement cycle.
NCCPL emphasized that the mock session will replicate live market conditions, allowing participants to test upgraded systems, workflows, and reporting mechanisms in a controlled environment.
Who Can Participate in the PSX T+1 Settlement Cycle Mock Session?
The Grand Mock Session will be open to all market participants, including:
• Brokerage houses
• Clearing members
• Custodians
• Market intermediaries
• Institutional investors
Participants are encouraged to actively engage in the exercise to identify and resolve any system or operational issues well ahead of the official transition.
Mock Session Timings and System Availability
During the mock testing period, testing systems will remain accessible daily from 10:30 AM to 7:00 PM. This extended access window is designed to allow sufficient time for end-to-end transaction testing, reconciliation checks, settlement processing, and exception handling under the PSX T+1 settlement cycle framework.
Market participants are advised to conduct:
• Trade execution simulations
• Clearing and settlement validations
• Fund and securities movement checks
• Reporting and compliance verifications
These checks mirror the processes currently followed in the live market environment.
NCCPL Urges Full Participation for Seamless PSX T+1 Rollout
NCCPL has strongly urged all market participants to ensure uninterrupted system connectivity prior to the mock session and to take full advantage of the testing window. Active participation is considered essential to ensure a smooth, timely, and disruption-free implementation of the PSX T+1 settlement cycle.
Any technical or procedural gaps identified during the mock exercise can be addressed promptly, minimizing operational risks once the new settlement regime goes live.
What This Means for Pakistan’s Capital Markets
The PSX T+1 settlement cycle represents a strategic step toward modernizing Pakistan’s financial market infrastructure. Successful completion of the Grand Mock Session will pave the way for a faster, safer, and more efficient settlement environment benefiting investors, intermediaries, and the broader economy.
As Pakistan continues to deepen its capital markets, reforms like T+1 settlement are expected to improve market competitiveness and attract greater domestic and foreign investment.