ccma2016 September 11, 2015 No Comments

TORONTO, May 1, 2016 - The Canadian Capital Markets Association (CCMA) is a federally incorporated, not-for-profit organization, launched to identify, analyze and recommend ways to meet the challenges and opportunities facing Canadian and international capital markets.

Now that the U.S. is planning to implement T+2 in Q3, 2017, the need for industry-wide coordination is again paramount, with Canada committed to meeting the same target and timeline.

In order to support this important initiative, the CCMA is establishing a T+2 Steering Committee (T2SC) to coordinate all of the activities that will ensure a smooth transition to T+2.

The mandate of the T+2 Steering Committee is to:

  • identify all areas (system development, procedure, process, etc.) that need to be addressed,
  • identify the solution(s) to the above,
  • gain industry agreement on required standards,
  • identify rule changes, if any,
  • agree on timelines,
  • coordinate activities to complete the tasks,
  • educate those in need of education,
  • be a spokesperson for the T+2 initiative,
  • plan the industrywide testing that will be needed to ensure overall industry readiness, and
  • coordinate with the US to ensure a lock-step approach with regards to implementation.

This Steering Committee will be co-chaired by Keith Evans, Executive Director, CCMA, and Jason O’Born, Director, Equity Operations at RBC Capital Markets. The frequency of meetings will be determined by the amount of effort identified in the initial meetings. However, it is expected to meet at least on a monthly basis.

The first meeting of the T2SC will be held on Thursday October 15, 2015 at 10:00 am. (Meeting room and dial-in details to be provided at a later date).

This first meeting will be used to establish a formal membership, identify priorities, set meeting schedules, and gather initial input from the community. It is also expected that the steering committee will need to establish several working groups, which will tackle specific industry issues. While the actual number of working groups is not yet fully known, there are three working groups that will be established in the early stages, each which will work in specific areas of expertise, and will report to the T2SC.

The first will be a Legal and Regulatory Working Group (LRWG), which will be tasked with identifying all areas in which rules will need to be investigated for possible change. Further, they will be responsible for coordinating the process to get the identified rule changes approved by the appropriate governing body. Jamie Anderson, General Counsel and Corporate Secretary at CSE (Canadian Securities Exchange) has agreed to be one of the co-chairs of this working group.

The second working group will be a Communication and Education Working Group (CEWG), which will be tasked with ensuring that the T+2 information reaches all areas of the industry and then downstream to the public. They will also be responsible for the preparation of information to be posted on the CCMA website, and any other website deemed appropriate to ensure the widest distribution.

The third working group will be an Operational Working Group (OWG), which will include the Sellside, Buyside, and Custodian communities, and will be responsible for identifying processes, procedures, and conflicted areas that may prevent T+2 from being successful. The biggest issue identified to date, is the Block Trade Allocation process, which will need to be resolved to ensure settlement occurs on T+2. This working group will need to coordinate between the broker, advisor, and custodian communities to ensure it is completed in a timely fashion. Domenic Sgambelluri, VP, Global Custody Operations at Northern Trust has agreed to be one of the co-chairs this working group.

The balance of co-chairs of the working groups will be identified before the end of October, 2015.

There is also a possibility that one or more of these working groups could establish a sub working group to deal with a very specific issue, but these are not expected to be long-lasting sub working groups.

To inform the CCMA of your intention to participate in any of the Working Groups, or the Steering Committee, please send an email to the contact listed below, identifying which committee/working group you would like to participate in, and the name of the company/association you will be representing.

For all organizations, please identify only the ‘lead’ T+2 person as the representative for your company.

Attendance, as an ‘observer’, at the actual meetings is open to all persons interested in the T+2 project.

Please be sure to email the undersigned before September 30, 2015.

Keith Evans, Executive Director, CCMA  - kevans@ccma-acmc.ca