CSA announces rule changes to shorten the settlement cycle for equity and debt trades in Canada
The Canadian Securities Administrators (CSA) has announced that rule amendments supporting a shorter settlement cycle for equity and long-term debt market trades have come into force in Canada.
The amendments to National Instrument 24-101 Institutional Trade Matching and Settlement align with the industry's move to reduce the time by which institutional trades must be matched from two days after the date of a trade (T+2) to one day (T+1).
This change is consistent with the associated regulatory rule changes in the United States, where the transition to T+1 will occur on May 28, one day later than in Canada.
National Instrument 24-101 provides a framework for ensuring efficient and timely settlement of the processing of institutional trades (equity and debt) by registered dealers and advisers (Registered Firms).
It includes several requirements, such as Registered Firms needing to establish, maintain, and enforce policies and procedures designed to achieve the matching threshold of institutional trades.
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
