CSA outlines steps for T+2 transition

Canadian Securities Administrators (CSA) has published two notices outlining amendments to support the transition from a three-day settlement cycle (T+3) for trades in Canada to two days (T+2) on September 5, 2017, consistent with the U.S.

Read: Most firms ready for transition from T+3 to T+2

CSA has published final amendments to National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101) and its companion policy to support a smooth transition to T+2 for equity and long-term debt market trades. The amendments will apply to registered dealers and advisers, clearing agencies and matching service utilities. Because of the interconnectedness of Canadian and U.S. capital markets, final amendments to NI 24-101 will come into force on September 5, 2017, or on any other target date for U.S. capital markets.

At the same time, the Canadian Securities Administrators — other than the British Columbia Securities Commission (BCSC) — published Notice and Request for Comment: Adoption of a T+2 Settlement Cycle for Conventional Mutual Funds, along with proposed amendments to National Instrument 81-102 Investment Funds (NI 81-102). The proposed amendments shorten the settlement cycle for conventional mutual funds to T+2.

While the BCSC isn’t publishing the proposed amendments to NI 81-102, it anticipates soon publishing for comment proposed amendments that would be consistent with them.

Comments on the proposed amendments to NI 81-102 should be submitted in writing by July 26, 2017. Regulators expect to publish the final amendments late in the summer of 2017.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.