Canada Welcomes T+2 Settlement

Effective September 5, 2017, the standard settlement timeframe for certain securities has been shortened to trade date plus two days (T+2) from trade date plus three days (T+3). The Canadian transition to a shorter settlement cycle is being made concurrently with the move to T+2 in the United States and will effect equity and long-term debt market trades in Canada.

As previously discussed, earlier this year the Canadian Securities Administrators adopted amendments to National Instrument 24-101 Institutional Trade matching and Settlement to reflect the new shorter settlement cycle. In Ontario, ministerial approval of the NI 24-101 amendments was granted on June 26, 2017. Similarly, both the Investment Industry Regulatory Organization of Canada (IIROC) and the Toronto Stock Exchange (TSX) adopted amendments to IIROC's Universal Market Integrity Rules (UMIR), Dealer Member Rules (DMR) and Form 1, and the TSX Company Manual, respectively, to provide for the T+2 cycle,