Effective September 5, 2017, the settlement cycle in the
Canadian and US securities markets will be shortened from three
days after the date of a trade (T+3) to two days after the date of
a trade (T+2). In Canada, this change follows the announcement on
April 27, 2017 by the Canadian Securities Administrators of their
intentions to adopt amendments to National Instrument 24-101
Institutional Trade Matching and Settlement and its
companion policy, to achieve a smooth transition to T+2 for equity
and long-term debt market trades.
Benefits of the Change to T+2
The change from T+3 to T+2 will keep Canadian markets in line
with simultaneous changes in the US markets, providing a uniform
period for settling securities by T+2. It will also harmonize
Canadian markets with the markets in Asia-Pacific, Europe,
Australia and New Zealand, which have already made the move to T+2
settlement cycle. Overall, the move to T+2 is expected to enhance
market efficiency, simplify
