Toronto
30 May 2017
Reporter: Stephanie Palmer

CCMA praises Canadian market participants on T+2 preparations


The executive director of the Canadian Capital Markets Association (CCMA) has praised the country’s financial markets regulators and participants in their efforts to prepare for the move to T+2 on 5 September, designed to “further strengthen” the marketplace.

Keith Evans said: “I applaud the efforts of the competing firms in Canada’s investment industry that have come together over the past two years to successfully implement internal systems and process changes necessary to move to a two-day timetable for cash and securities along with our American counterparts.”

Currently, settlement for the majority of securities transactions take place three days after the trade. The move to a shorter settlement cycle is intended to make for faster and safer exchange of securities and cash, and coincides with the move to T+2 in the US.

Specifically, Evans thanked the Canadian Securities Administrators, a group of provincial and territorial securities regulators, for its work on finalising new rules and providing clear guidance on the changes.

He also pointed to the successful testing undertaken by investment firms and large securities infrastructure organisations, who he said provide critical links between different parts of the investment industry.

Earlier this month, the CSA expanded its proposals on the transition, inviting comment on the proposals relating to the National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101) for equity and long-term debt market trades.

It also proposed amendments to National Instrument 81-102 Investment Funds (NI 81-102), which would see the settlement cycle for conventional mutual funds cut to T+2.

Comments on the proposed amendments to NI 81-102 should be submitted by 26 July and regulators expect to publish the final amendments late in the summer of 2017.

Evans said: “Investors in Canada rightly expect our market infrastructure to function effectively, reliably and smoothly as they trade in our markets, and this change is designed to further strengthen our financial marketplace.”

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