The Canadian Securities Administrators (CSA) published final amendments (Amendments) to National Instrument 24-101 Institutional Trade Matching and Settlement and changes to its Companion Policy.
The Amendments reflect the upcoming shortening of the standard settlement cycle for equity and long-term debt market trades in Canada from two days after the date of a trade (T+2) to one day after the date of a trade (T+1).
The move to a T+1 settlement cycle in Canada will occur on May 27, 2024, the same day the Amendments come into force. This timing was chosen to align with the move to T+1 and associated regulatory rule changes in the United States. Because of a statutory holiday in the United States, the Canadian changeover and rule changes will occur one day earlier than those made by US markets and regulators.
While the Amendments had originally proposed an institutional trade-matching (ITM) deadline of 9 p.m. Eastern Time on T, comment letters and other consultations with industry indicated that an ITM deadline of 3:59 a.m. Eastern Time on T+1 would be preferable.