30 May 2017
Toronto
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.”

More regulation news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
No further SFT regulations on the horizon, says European Commission
20 October 2017 | Paris | Reporter: Jenna Lomax
article synopsis 300 characters only so it fits to three lines. always add three periods to finish synopsis...
LEI compliance is non-negotiable, says ESMA
20 October 2017 | Paris | Reporter: Jenna Lomax
Steven Maijoor, chair of ESMA stated that there is no room for negotiation where legal entity identifiers are concerned
US appeals court dismisses US equity lending mismanagement case
20 October 2017 | Missouri | Reporter: Drew Nicol
Allegations of mismanagement of a securities lending programme brought by two US Bank pension beneficiaries was dismissed by the US Court of Appeals for the Eighth Circuit this week
Margin rules depress derivative contract terms, survey finds
19 October 2017 | Brussels | Reporter: Jenna Lomax
Only few changes were reported regarding credit terms and conditions with respect to non-centrally cleared OTC derivatives
Trax gains MiFID II ARM licence from UK FCA
29 September 2017 | London | Reporter: Drew Nicol
Reporting solution provider Trax is among the first to be approved by the UK FCA as an approved reporting mechanism (ARM) for transaction reporting services under MiFID II
Shadow banking will not be banned, confirms IMF
26 September 2017 | Helsinki | Reporter: Jenna Lomax
The IMF, along with the FSB and other regulatory bodies, have no desire to shut down the alternative financing industry but that some aspects of the market’s risk features must be managed
AcadiaSoft expands user base for IM compliance
21 September 2017 | Massachusetts | Reporter: Drew Nicol
The second phase of the IM rules went live on 1 September under the regulatory framework of BCBS and IOSCO