CCMA PTM Advisory Council
The Board of Directors of the Canadian Capital Markets Association (CCMA) has approved a CCMA initiative to support the investment industry in working with the TMX, including CDS and CDCC, to modernize its clearing and settlement systems, as well as its entitlement and corporate action systems, called the Post-Trade Modernization (PTM) Project.
The 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.
Due to its mandate to communicate, educate and help co-ordinate the investment industry on matters spanning multiple industry segments, the CCMA was chosen to support this important TMX project. These systems are critical to Canadian capital markets because CDS is the hub connecting investment dealers, custodians, exchanges and other parts of Canada’s clearing and settlement infrastructure and, indirectly, the buyside, including pension plans, fund managers and others. To help ensure a smooth transition to modernized systems, the CCMA established the CCMA Advisory Council.
Note: In 2021, the Board approved a temporary T+1 initiative. On an interim basis, until a formal date for the transition to T+1 is announced or enough scope is amassed to justify its own committee structure, all activities will be dealt with through the existing CCMA Advisory Council. All T+1-related activities will have a separate set of agenda items and minutes. Once a date is set, or scope is sufficiently large, a formal and separate project and committee structure will be presented to the CCMA Board for approval.
The CCMA Advisory Council is chaired by the CCMA’s Executive Director (Keith Evans). Participation on the CCMA’s Advisory Council is open to all CDS participant organizations, their service bureaus, and their vendors. Industry associations, SROs, buy-side firms, consultants, as well as regulators also are welcome to attend as ‘Observers’.
The CCMA Advisory Council reports to the CCMA Board of Directors via the Executive Director/Chair of the CCMA Advisory Council.
The terms of reference for the CCMA Advisory Council are to review and provide input to the TMX Post-Trade Modernization Oversight Committee, as well as the consultative work streams, overseeing the Post-Trade Modernization Project, as well as, as of 2021, to oversee developments to shorten the North-American securities settlement cycle from T+2 to T+1 (or less).
With respect to the Post-Trade Modernization Project, CCMA Advisory Council members will:
- review all material documents related to the project
- identify issues arising in any area of the project that will have a material impact on transaction processing
- assess/propose solution(s) to the above
- gain industry agreement where required
- identify rule changes, if any
- identify procedural changes, if any
- identify vendor changes as a result of changes identified above
- comment on timelines
- coordinate activities to complete tasks the CCMA Advisory Council identifies
- communicate with, and educate, the broader investment community as required.
With respect to the T+1 initiative, CCMA Advisory Council Members will additionally, on an interim basis, provide feedback and guidance, adopting the same general project framework as used for the move to T+2, to undertake the following tasks:
- Begin to build awareness within the Canadian industry (e.g., meet with regulators, industry experts, and industry association counterparts; seek speaking engagements; draft relevant articles)
- Work with industry members and Canadian regulators to again sensitize U.S. counterparts (regulatory and industry) of the desirability (and necessity) of working jointly with Canada
- Assess and update the tools that were helpful in the move from T+3 to T+2
- Review the CCMA’s 2018 T+2 Post-Mortem Report and U.S. T+2 Playbook for what could lay the groundwork for a move to T+1
- Prepare a standby media release for CCMA Board approval for use should the U.S. announce a transition date or the start of a major T+1 initiative
- Encourage the industry to make headway in areas (e.g., trade corrections, trade allocations, etc.) that would both bring benefits today and be critical milestones for a move to T+1
- Assess the market and operational implications for the Canadian capital markets of not being ready to transition to a shorter settlement cycle at the same time as the U.S. and mitigation options.
Meetings will be called by the Chair. Notices calling meetings and agendas will be sent to all CCMA Advisory Council members/observers. Meetings will be minuted and attendance recorded. Meeting minutes will be tabled with the CCMA Advisory Council for approval. There is no set minimum quorum requirement for meetings. Minutes and decisions of the CCMA Advisory Council on PTM and T+1 matters will be posted on the CCMA website.
Chair – Keith Evans
2019-January-9 – CNS Hold and Buy-In Extension Requirements