Canadian Capital Markets Association

CCMA Board declares T+1 project implementation a success; CCMA operations paused until next cross-industry project Today the CCMA Board published a media release and T+1 Post-Implementation Report with highlights of the one-business-day securities-settlement-cycle reduction project and recommendations for the future. The transition to T+1, despite complex challenges, was successful and improvements continue to be made. Countries in Europe and elsewhere are investigating a move to T+1, which would be welcomed by North American capital markets participants and is also seen as a minimum requirement before any further reduction in the settlement cycle. Shortening the settlement cycle more would be considerably riskier and more costly to achieve.   Media Release: https://lnkd.in/gHi-upXv Report: https://lnkd.in/geuAZWt8 #T1 #Tplus1 #shortenedsettlementcycle Alexandra DeCata Matthew Latimer Yianna Daklaras Pat Dunwoody

Le conseil d’administration de l’ACMC déclare que la mise en œuvre du projet T+1 est un succès; les activités de l’ACMC sont suspendues jusqu’au prochain projet intersectoriel   Le conseil d’administration de l’ACMC a publié aujourd’hui un communiqué de presse et un rapport de suivi de la mise en œuvre T+1, qui présente les faits saillants du projet de réduction du cycle de règlement des titres à T+1 et formule des recommandations pour l’avenir. La transition vers T+1, malgré des défis complexes, s’est bien déroulée et les améliorations au traitement des titres se poursuivent. Les pays d’Europe et d’ailleurs étudient la possibilité de passer à T+1, ce qui serait bien accueilli par les participants aux marchés des capitaux nord-américains et est également considéré comme une exigence minimale avant toute réduction supplémentaire du cycle de règlement. Raccourcir davantage le cycle de règlement serait beaucoup plus risqué et coûteux à réaliser.   Communiqué de presse : https://lnkd.in/g8kruy7T Rapport : https://lnkd.in/geuAZWt8 #T1 #Tplus1 #clearingandsettlement

With Hallowe'en approaching, it's the time to raise the ghosts and other spectres of T+1. Many firms are refining T+1 systems and procedures to further optimize T+1 results (spoiler alert: they're improving), however, five relatively recent releases show that T+1 is neither gone nor forgotten. October 16, 2024: T+1 Pulse Survey (Value-Exchange) https://lnkd.in/gUq4jxAE October 15, 2024: Statement on shortening the standard securities settlement cycle in the European Union: next steps (European Securities and Markets Authority – ESMA) https://lnkd.in/eMYWBiYr September 27, 2024: Draft Recommendations Report & Consultation (Accelerated Settlement Taskforce, Technical Group) https://lnkd.in/gBsSkxeR September 12, 2024: T+1 After Action Report (SIFMA ICI, DTCC) https://lnkd.in/gj5rR6sB September 4, 2024: Securities Services Evolution 2024 – Disruption and transformation in financial market infrastructures (Citi Securities Services) pp. 15-23 https://lnkd.in/gVt23ZBD #T1 #Tplus1 #clearingandsettlement

Good news for some Canadian asset managers One of the biggest challenges in moving to T+1 was not just the systems and process changes, but mismatches. That is, mismatches between securities (including funds) settling on T+1 and those still settling on T+2 or longer, between currencies that settle on T+2 when the securities they relate to are now T+1, and between western time zones and Asia-Pacific ones. All of these impediments are worsened by mismatched holidays, leading to the delights of what is known as holiday processing. The Ontario Securities Commission granted three-year exemptions to allow an increase in borrowing from the current 5% of assets limit to 10%. Needless to say, conditions apply. While this applies to 12 applicants, it's reasonable to assume that others will request similar exemptions, if nothing else than as a precaution in the case of volatility. Better safe than sorry. https://lnkd.in/gUr3mmuF #T1 #Tplus1 #ShortenedSettlementCycle

T+1 school's officially out; all hail the graduating class of 2024! The CCMA issued notice of T+1 project success last Friday, but delayed until now to say anything more as we waited for the numbers to prove it. They're in and they do: Transition: CHECK! A few twitches but no showstopping glitches despite our shorter implementation weekend. Matching: CHECK! While there’s still more to do, the Canadian industry 3:59 a.m. ET on T+1 confirmation rate (based on the number of trades) almost doubled and, by value, increased by over 50%. Fails: CHECK! The T+1 failed trade rate – less than 2% based on value – held steady at pre-transition levels. Collateral savings: CHECK! Early reductions in the VAR component of the CNS collateral pool range from 23-28%. Please check out these links for more detail and thanks to all who helped and cheered us on: En: https://lnkd.in/gpm6Piz7 En: https://lnkd.in/gi5nrZR6 Fr. https://lnkd.in/gQQrYhcJ Fr: https://lnkd.in/gCNGP8ih

In one place, all (OK, most) of what you want to know about T+1 around most of the world. Very good piece by Thomas Murray that I'll class as the best round-up of T+1 globally. And again a thanks to all who have participated in bringing about T+1 despite some major challenges - hope you caught up on some well-deserved sleep this weekend! #T1 #tplus1 #shortenedsettlementcycle https://lnkd.in/g-ytxzp4

Bienvenidos a nuestros amigos de los mercados de capitales peruanos! Welcome Peruvians, who join Americans in moving to a shorter T+1 settlement cycle on Tuesday, May 28, 2024. The RV3 (dual-listed) securities, as well as seven local issuers, will move to the shorter cycle. This includes 15 Canadian issues, which you can find listed in the link below. https://lnkd.in/g8kXuw6h

Green, green, green, green... Canadian infrastructure providers - CDS, CDCC, Fundserv, vendors, custodians, and others - chorused in weekend transition calls that everything is green and good to go when markets open later today in Canada. With the CCMA's website countdown clock showing "0 days to go ... until T+1 (MAY 27, 2024)," here's to all those working over the past number of years and through the past weekend on a smooth transition in Canada, Argentina, Jamaica, and Mexico today, and to those in the U.S. and Peru, tomorrow. #T1 #Tplus1 #shortenedsettlementcycle

Alert to Fund Companies: CHECK IT OUT A number of parties noticed that their funds or other T+2 products were not on the Fundserv list of funds moving to T+1 when the move to the shorter cycle had been approved within their firms sometime earlier. If you are a manufacturer clearing through Fundserv, please check that your company has actually submitted the necessary FD file to Fundserv.

No longer late for a very important date! La version française suit Good news yesterday, and more good news today. The Canadian Securities Administrators (CSA) today published a release confirming that Canadian securities regulators have adopted final shortened settlement cycle amendments for mutual funds. The amendments clarify payment dates for transactions, notably the timeframe for forced redemption of securities for non-payment as two days after the pricing date to accommodate funds remaining on both a T+2, and those moving to a T+1, settlement cycle. https://lnkd.in/gs95F8Mh Les Autorités canadiennes en valeurs mobilières « les ACVM » ont publié aujourd'hui un communiqué confirmant que les autorités en valeurs mobilières du Canada mettent en œuvre les modifications définitives qui abrègent le cycle de règlement des organismes de placement collectif. Elles clarifient les dates de paiement des opérations ainsi que le délai pour le rachat forcé des titres en cas de non-paiement : deux jours après la date de fixation du prix pour accommoder les fonds T+2 et T+1. https://lnkd.in/gFEND8k4 #T1 #Tplus1 #shortenedsettlementcycle