Preparing For The Implementation Of T+2 Settlement

In August 2016, the Canadian Securities Administrators ("CSA") published for comment Proposed Amendments to National Instrument 24-101 ("NI 24-101") – Institutional Trade Matching and Settlement, Proposed Changes to Companion Policy 24-101 ("CP 24-101") – Institutional Trade Matching and Settlement and CSA Consultation Paper 24-402 – Policy Considerations for Enhancing Settlement Discipline in a T+2 Settlement Cycle Environment (the "Consultation Paper").

The proposed amendments to NI 24-101 and CP 24-101 (the "Proposed Amendments") are intended to assist in a successful migration to T+2 settlement from the current T+3 regime. The Proposed Amendments also update NI 24-101 to reflect certain developments since it came into force in 2007, as well as clarify certain existing provisions. For example, the Proposed Amendments include making trades in exchange-traded mutual fund (ETF) securities, a significant area of growth since 2007, subject to NI 24-101. Other