Dear Valued Clients,

We would like to inform you that Philippine Stock Exchange (PSE) has mandated all Trading Participants to prepare for a smooth transition to the new T+2 Settlement cycle from the usual T+3 settlement cycle. This transition aligns with PSE’s industry standards and has received approval from the SEC as per SEC Memorandum Circular No. 11 Series of 2023.

Kindly note that the implementation date of this new cycle will be on August 24, 2023. Various types of transactions will be adjusted accordingly.

1) Transition Period: “To ensure a seamless transition to the T+2 Settlement scheme, trades executed on August 23, 2023 (T+3), and trades executed on August 24, 2023 (T+2), will both be settled on August 29, 2023.”

2) Commencement of T+2 Settlement Cycle: “Commencing from August 29, 2023, all trades will adhere to the T+2 Settlement cycle. Additionally, the SCCP’s proposal for a Two-Week Transition Period has been accepted, extending settlement deadlines by 1 hour for T+2 migration, effective from August 29, 2023.

Transaction Date Settlement Cycle Settlement Date Regular Settlement Deadline Extended Settlement Deadline

August 23, 2023 T+3 August 29, 2023 (Batch 1) 11:00 AM 12:00 PM

August 24, 2023 T+2 August 29, 2023 (Batch 2) 2:00 PM 3:00PM

From August 20, 2023 until September 11, 2023 (subsequent settlement dates with T+2 settlement cycle)

Settlement Dates Regular Settlement Deadline Extended Settlement Deadline

August 30, 2023 until September 11, 2023 12:00 NN 1:00 PM

3) Daily transactions, which previously took three days (T+3) to settle, will now be expedited to settle within two days (T+2).

4) Cash Out from Selling: When you sell stocks and receive cash, the timing of cash outflows will be influenced by the new T+2 settlement cycle.

5) Collections from buying (traditional accounts): Similarly, the collection of receivables resulting from the buying transactions will be subject to the revised T+2 settlement timeline.

6) Ex-Date for corporate actions: Please be informed that for corporate actions effective August 24, 2023, the determination of the ex-rights date for corporate actions beginning the target effective date of August 24, 2023 will be one (1) trading day prior to the disclosed record date. Ex-rights dates of actions disclosed before August 24, 2023 will be adjusted. The Exchange will contact affected listed companies for revised disclosures to sync the market calendar with the updated ex-rights date.

For clarifications and/or any other inquiries, kindly contact us at 8848-2915 and look for any of the following:

Settlements Department: Ms. Rhodora Baricaua / Ms. Judie Meneses

Finance Department: Mr. Danny Alqueza / Ms. Lara Jimenez

Other Updates in FB Page: AP Securities Inc.