{"id":70889,"date":"2016-03-22T00:03:47","date_gmt":"2016-03-22T04:03:47","guid":{"rendered":"http:\/\/ccma-acmc.ca\/beta\/?page_id=70889"},"modified":"2024-10-31T12:56:30","modified_gmt":"2024-10-31T16:56:30","slug":"faqs","status":"publish","type":"page","link":"https:\/\/ccma-acmc.ca\/en\/resources-ressources\/faqs\/","title":{"rendered":"FAQs \/ FAQ"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<\/p>\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<h3>Frequently Asked Questions (FAQs)<\/h3>\n<p>Below are FAQs, or links to FAQs, developed in the course of a number of capital markets industry projects.<\/p>\n<\/div>\n<\/div>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text]<\/p>\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<h3>Foire aux questions (FAQ)<\/h3>\n<\/div>\n<p>Voici les FAQ, ou liens vers des FAQ, d\u00e9velopp\u00e9es au cours de plusieurs projets dans l\u2019industrie des march\u00e9s financiers.<\/p>\n<\/div>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text]Below you will find the questions and answers developed for the move from a T+2 to a T+1 securities settlement cycle, with more recent FAQs added at the top.\u00a0 Additionally, a good number of the CCMA\u2019s\u00a0<a href=\"https:\/\/ccma-acmc.ca\/en\/t1-resources\/faqs_t2-2015-2018\/\">T+3-to-T+2 FAQs<\/a> may also be useful at some point.\u00a0 Please also check out U.S.\u00a0<a href=\"https:\/\/www.dtcc.com\/ust1\/faqs\">T+1 FAQs<\/a>.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text]Les questions et r\u00e9ponses formul\u00e9es en vue du passage \u00e9ventuel d\u2019un cycle de r\u00e8glement des op\u00e9rations sur titres de T+2 \u00e0 T+1 sont pr\u00e9sent\u00e9es ici, les questions les plus r\u00e9centes figurant en haut de page. Un bon nombre des points de la <a href=\"https:\/\/ccma-acmc.ca\/en\/resources-ressources\/archives\/faqs_t2-2015-2018\/\">FAQ T+3 \u00e0 T+2<\/a> de l\u2019ACMC seront \u00e9galement utiles occasionnellement. Consultez \u00e9galement les <a href=\"https:\/\/www.dtcc.com\/ust1\/faqs\">FAQ T+1 am\u00e9ricaines<\/a>.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_toggle title=&#8221;29. What should issuers and their securities lawyers and other advisors know about moving to a shorter settlement cycle?&#8221;]Issuers and their advisors may have heard something about a shorter trade settlement cycle but they should know that there is an impact for them also. They should know that the number of days it takes to settle a trade in secondary markets in North America is reducing from the current two business days after a trade (T+2) to next day \u2013 T+1 \u2013 effective May 27, 2024 in Canada and Mexico, and May 28, 2024 in the U.S. (May 27 being a U.S. holiday). While primary markets are out of scope of the change, related corporate actions may be affected. Because the change from T+2 to T+1 settlement is more complex than the T+3 to T+2 transition, issuers and their advisors are encouraged to:<\/p>\n<ul>\n<li>Avoid creating new events that settle on either the first date set for trading on a T+1 basis (May 27) or the May 28 \u2018double settlement\u2019 date when trades from two business days prior (the last day of T+2 trading) as well as May 27 \u2013 the first day of T+1 trading \u2013 will settle on the same day.<\/li>\n<li>Have staff ready to address questions that may arise during transition.<\/li>\n<li>Consider appropriate internal and external communications for stakeholders.<\/li>\n<\/ul>\n<p><strong>Background:<\/strong><\/p>\n<p>Corporate action events involve the calculation and payment to a securities holder of cash and\/or securities, whether mandatory (e.g., interest, dividends, principal repayment at maturity) \u2013 when beneficial holders will receive the entitlement without having to make a decision \u2013 or voluntary, when beneficial holders must decide to accept or ignore an offer (e.g., rights subscriptions, tenders). Corporate actions include: (i) events that affect corporate share or debt structure or payments, such as corporate reorganizations (e.g., mergers or acquisitions, leveraged buy-outs or tender offers), (ii) special stock transactions (e.g., splits, rights offerings, conversions, odd lot programs), and (iii) changes in capital structure (e.g., through flotations, mergers, takeovers or capital reorganizations).<\/p>\n<p><strong>Effect of the move to T+1 on entitlements:<\/strong><\/p>\n<table width=\"661\">\n<thead>\n<tr>\n<td width=\"247\"><strong>Function<\/strong><\/td>\n<td width=\"228\"><strong>Current Practice<\/strong><\/td>\n<td width=\"186\"><strong>Practice as of May 27, 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"247\"><strong>Distribution Events <\/strong><\/p>\n<p>if base security trades\u2026<\/td>\n<td width=\"228\">\u00b7\u00a0\u00a0\u00a0 Without due bills:<a href=\"#_ftn1\" name=\"_ftnref1\"><sup>[1]<\/sup><\/a> ex-date is record date minus 1<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0 With due bills: ex-date is the due bill redemption date minus 1<\/td>\n<td width=\"186\">\u00b7\u00a0\u00a0\u00a0 <strong><em>Without <\/em><\/strong><strong>due bills: ex-date is record date<\/strong><\/p>\n<p>\u00b7\u00a0\u00a0\u00a0 <strong><em>With<\/em><\/strong><strong> due bills: ex-date is due bill redemption date<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"247\"><strong>Mandatory Events<\/strong><\/td>\n<td width=\"228\">\u00b7\u00a0\u00a0\u00a0 CDS payable date is delisting date plus 3<\/td>\n<td width=\"186\">\u00b7\u00a0\u00a0\u00a0 <strong>CDS payable date is delisting date plus 2<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"247\"><strong>Mandatory with Options Events<\/strong><\/p>\n<p>Event set-up is date-driven, not driven by the settlement period<\/td>\n<td width=\"228\">\u00b7\u00a0\u00a0\u00a0 CNS restriction and trade conversion dates are calculated based on the agent expiry and payable dates provided by external sources<\/td>\n<td width=\"186\">\u00b7\u00a0\u00a0\u00a0 <strong>No changes<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"247\"><strong>Voluntary Events<\/strong><\/p>\n<p>(Letter of guaranteed delivery for event expiries (cover\/protect period)<a href=\"#_ftn2\" name=\"_ftnref2\"><sup>[2]<\/sup><\/a>)<\/td>\n<td width=\"228\">\u00b7\u00a0\u00a0\u00a0 Expiry date plus 2<\/td>\n<td width=\"186\">\u00b7\u00a0\u00a0\u00a0 <strong>Expiry date plus 1<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Transition: <\/strong><\/p>\n<p><strong>\u00a0<\/strong>Changes to the TSX Company Manual related to T+1 settlement will be effective May 27, 2024. Other dates relevant to the change in ex-date calculation of corporate action events are as follows (with U.S. equivalents added for convenience).<\/p>\n<table width=\"611\">\n<tbody>\n<tr>\n<td width=\"251\"><strong>Record Date<\/strong><\/td>\n<td width=\"216\"><strong>Ex Date (Canada)<\/strong><\/td>\n<td width=\"144\"><strong>Ex Date (U.S.)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"251\">Friday, May 24, 2024<\/p>\n<p>(last day of trading for T+2 settlement)<\/td>\n<td width=\"216\"><strong>Thursday, May 23, 2024<\/strong><\/td>\n<td width=\"144\">Same as Canada<\/td>\n<\/tr>\n<tr>\n<td width=\"251\">Monday, May 27, 2024<\/p>\n<p>(first day of trading for T+1 settlement)<\/td>\n<td width=\"216\"><strong>Monday, May 27, 2024<\/strong><\/td>\n<td width=\"144\">Closed<\/td>\n<\/tr>\n<tr>\n<td width=\"251\">Tuesday, May 28, 2024<\/td>\n<td width=\"216\"><strong>Tuesday, May 28, 2024<\/strong><\/td>\n<td width=\"144\">Same as Canada<\/td>\n<\/tr>\n<tr>\n<td width=\"251\">Wednesday, May 29, 2024<\/td>\n<td width=\"216\"><strong>Wednesday, May 29, 2024<\/strong><\/td>\n<td width=\"144\">Same as Canada<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> \u00a0 An exchange may set a later ex-date (e.g., because of challenges with stock or large cash dividends) and relevant securities will trade with a \u2018due bill\u2019 attached and have a non-standard ex-date.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u00a0\u00a0 Investors can purchase securities even on the offer\u2019s expiration date, with the protect feature \u2018covered\u2019 once the securities settle.[\/vc_toggle][vc_toggle title=&#8221;29. Quelles actions doivent prendre les \u00e9metteurs, leurs avocats sp\u00e9cialis\u00e9s en valeurs mobili\u00e8res et leurs autres conseillers pour la transition \u00e0 un cycle de r\u00e8glement plus court?&#8221;]Les \u00e9metteurs et leurs conseillers ont peut-\u00eatre eu vent d\u2019un cycle de r\u00e8glement des transactions plus court, dont ils connaissent l\u2019incidence. Ils devraient savoir que le nombre de jours n\u00e9cessaires pour le r\u00e8glement d\u2019une transaction sur les march\u00e9s secondaires nord-am\u00e9ricains passe de deux jours ouvrables apr\u00e8s la transaction (T+2) au jour suivant (T+1) d\u00e8s le 27\u00a0mai 2024 au Canada et au Mexique, et le 28\u00a0mai 2024 aux \u00c9tats-Unis (le 27\u00a0mai \u00e9tant un jour f\u00e9ri\u00e9 aux \u00c9tats-Unis). Les march\u00e9s primaires ne sont pas vis\u00e9s par cette modification, mais les droits connexes sont susceptibles de l\u2019\u00eatre. Le passage du r\u00e8glement T+2 \u00e0 T+1 s\u2019av\u00e8re plus complexe que le passage de T+3 \u00e0 T+2, aussi, les \u00e9metteurs et leurs conseillers sont invit\u00e9s \u00e0 :<\/p>\n<ul>\n<li>\u00c9viter de cr\u00e9er de nouveaux \u00e9v\u00e9nements dont le d\u00e9nouement a lieu soit \u00e0 la premi\u00e8re date fix\u00e9e pour la n\u00e9gociation \u00e0 T+1 (27\u00a0mai), soit \u00e0 la date de \u00ab\u2009double r\u00e8glement\u2009\u00bb du 28\u00a0mai, lorsque les transactions effectu\u00e9es deux jours ouvrables pr\u00e9c\u00e9demment (dernier jour de n\u00e9gociation T+2) ainsi que le 27\u00a0mai \u2014 premier jour de la n\u00e9gociation T+1 \u2014 se d\u00e9noueront le m\u00eame jour.<\/li>\n<li>Pr\u00e9parer les effectifs \u00e0 r\u00e9pondre aux questions pos\u00e9es durant la transition.<\/li>\n<li>Envisager des communications internes et externes appropri\u00e9es pour leurs parties prenantes.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Contexte :<\/strong><\/p>\n<p>Les \u00e9v\u00e9nements de march\u00e9 impliquent le calcul et le paiement \u00e0 un d\u00e9tenteur de titres de liquidit\u00e9s et\/ou de titres, obligatoires (par exemple, int\u00e9r\u00eats, dividendes, remboursement du capital \u00e0 la date d\u2019\u00e9ch\u00e9ance) \u2014 lorsque les b\u00e9n\u00e9ficiaires r\u00e9els recevront le droit sans prendre de d\u00e9cision \u2014 ou volontaires, lorsque les b\u00e9n\u00e9ficiaires r\u00e9els devront accepter ou ignorer une offre (par exemple, souscription de droits, appels d\u2019offres). Les \u00e9v\u00e9nements de march\u00e9 englobent (i) ceux qui touchent la structure des actions ou de la dette de la soci\u00e9t\u00e9 ou les paiements, comme les r\u00e9organisations de soci\u00e9t\u00e9s (par exemple, fusions ou acquisitions, rachats de soci\u00e9t\u00e9s par effet de levier ou offres publiques d\u2019achat), (ii) les transactions sp\u00e9ciales sur actions (par exemple, fractionnements, offres de droits, conversions, programmes de lots irr\u00e9guliers), et (iii) les modifications \u00e0 la structure du capital (par exemple, via l\u2019introduction en bourse, fusions, acquisitions ou r\u00e9organisations du capital).<\/p>\n<p><strong>Effet du passage \u00e0 T+1 sur les droits :<\/strong><\/p>\n<table width=\"648\">\n<thead>\n<tr>\n<td width=\"216\"><strong>\u00c9v\u00e8nement<\/strong><\/td>\n<td width=\"246\"><strong>Pratique actuelle<\/strong><\/td>\n<td width=\"186\"><strong>Pratique au 27\u00a0mai 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"216\"><strong>\u00c9v\u00e9nements de distributions <\/strong><\/p>\n<p>Si le titre de base est \u00e9chang\u00e9&#8230;<\/td>\n<td width=\"246\">\u00b7\u00a0 Sans factures exigibles:<a href=\"#_ftn1\" name=\"_ftnref1\"><sup>[1]<\/sup><\/a> date d\u2019\u00e9ch\u00e9ance est la date d\u2019enregistrement moins 1<\/p>\n<p>\u00b7\u00a0 Avec des factures exigibles : la date ex est la date de remboursement de la facture exigible moins 1<\/td>\n<td width=\"186\">\u00b7\u00a0 <strong>Sans factures exigibles : la date ex est la date d\u2019enregistrement<\/strong><\/p>\n<p>\u00b7\u00a0 <strong>Avec factures exigibles : la date ex est la date de remboursement des factures exigibles<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"216\"><strong>\u00c9v\u00e9nements obligatoires<\/strong><\/p>\n<p>&nbsp;<\/td>\n<td width=\"246\">\u00b7\u00a0 La date de paiement du CDS est la date de radiation de la cote plus 3<\/td>\n<td width=\"186\">\u00b7\u00a0 <strong>La date de paiement du CDS est la date de radiation de la cote plus 2<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"216\"><strong>Obligatoire avec les \u00e9v\u00e9nements d\u2019options<\/strong><\/p>\n<p>La mise en place de l\u2019\u00e9v\u00e9nement est d\u00e9termin\u00e9e par la date et non par la p\u00e9riode de r\u00e8glement.<\/td>\n<td width=\"246\">\u00b7\u00a0 Les dates de restriction de la SNC et de conversion commerciale sont calcul\u00e9es sur la base des dates d\u2019\u00e9ch\u00e9ance et d\u2019exigibilit\u00e9 de l\u2019agent fournies par des sources externes.<\/td>\n<td width=\"186\">\u00b7\u00a0 <strong>Pas de changement<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"216\"><strong>\u00c9v\u00e9nements volontaires<\/strong><\/p>\n<p>Lettre de garantie de livraison pour les \u00e9ch\u00e9ances de l\u2019\u00e9v\u00e9nement (p\u00e9riode de couverture\/protection)<a href=\"#_ftn2\" name=\"_ftnref2\"><sup>[2]<\/sup><\/a><\/td>\n<td width=\"246\">\u00b7\u00a0\u00a0\u00a0 Date d\u2019\u00e9ch\u00e9ance plus 2<\/td>\n<td width=\"186\">\u00b7\u00a0\u00a0\u00a0 Date d\u2019\u00e9ch\u00e9ance plus 1<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Transition:\u00a0 <\/strong><\/p>\n<p><strong>\u00a0<\/strong>Les changements apport\u00e9s au Guide de la TSX \u00e0 l\u2019intention des soci\u00e9t\u00e9s relativement au r\u00e8glement \u00e0 T+1 entreront en vigueur le 27\u00a0mai 2024. Les autres dates relatives au changement de calcul de la date ex-date des op\u00e9rations sur titres sont les suivantes (les \u00e9quivalents am\u00e9ricains sont ajout\u00e9s pour raisons de commodit\u00e9).<\/p>\n<table width=\"611\">\n<tbody>\n<tr>\n<td width=\"209\"><strong>Date d\u2019enregistrement<\/strong><\/td>\n<td width=\"216\"><strong>Date d\u2019\u00e9ch\u00e9ance (Canada)<\/strong><\/td>\n<td width=\"186\"><strong>Date d\u2019\u00e9ch\u00e9ance (U.S.)<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"209\">Vendredi 24\u00a0mai 2024<\/p>\n<p>(dernier jour de n\u00e9gociation pour le r\u00e8glement T+2)<\/td>\n<td width=\"216\"><strong>Jeudi 23 mai 2024<\/strong><\/td>\n<td width=\"186\">M\u00eame chose qu\u2019au Canada<\/td>\n<\/tr>\n<tr>\n<td width=\"209\">Lundi 27\u00a0mai 2024<\/p>\n<p>(premier jour de n\u00e9gociation pour le r\u00e8glement \u00e0 T+1)<\/td>\n<td width=\"216\"><strong>Lundi 27\u00a0mai 2024<\/strong><\/td>\n<td width=\"186\">Ferm\u00e9<\/td>\n<\/tr>\n<tr>\n<td width=\"209\">Mardi 28\u00a0mai 2024<\/td>\n<td width=\"216\"><strong>Mardi 28\u00a0mai 2024<\/strong><\/td>\n<td width=\"186\">M\u00eame chose qu\u2019au Canada<\/td>\n<\/tr>\n<tr>\n<td width=\"209\">Mercredi 29\u00a0mai 2024<\/td>\n<td width=\"216\"><strong>Mercredi 29\u00a0mai 2024<\/strong><\/td>\n<td width=\"186\">M\u00eame chose qu\u2019au Canada<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> \u00a0 Une bourse peut fixer une date d\u2019expiration plus tardive (par exemple, en raison de probl\u00e8mes li\u00e9s \u00e0 des actions ou \u00e0 des dividendes en esp\u00e8ces importants) et les titres concern\u00e9s seront n\u00e9goci\u00e9s avec une \u00ab\u2009facture exigible\u2009\u00bb et auront une date d\u2019expiration non standard.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u00a0\u00a0 Les investisseurs peuvent acqu\u00e9rir des titres m\u00eame \u00e0 la date d\u2019expiration de l\u2019offre, la fonction de protection \u00e9tant \u00ab\u2009couverte\u2009\u00bb une fois les titres r\u00e9gl\u00e9s.[\/vc_toggle][vc_toggle title=&#8221;28. Do CIRO-registered Dealers currently \u2013 and will they after the updated CIRO T+1 rule changes are in effect \u2013 have to submit exception reports to CIRO if the 90% matching requirements aren\u2019t met? (September 29, 2023)&#8221;]Under current CIRO rules, an exception report must be filed with CIRO if the broker-to-broker quarterly compliant trade percentage is less than 90%.\u00a0 Dealers must continue to file exception reports with CIRO until the proposed rule amendments are implemented (targeted for before the <strong>May 27, 2024<\/strong> T+1 Canadian implementation date).<\/p>\n<p>Once the new rules are in place, Dealers will no longer be required to file an exception report with CIRO even if the quarterly compliant trade percentage is less than 90%.\u00a0 However, CIRO will continue to monitor Dealers\u2019 trade-matching percentages each quarter. Based on firm-by-firm data received from CDS, CIRO may request an action plan, explanation, or other information if a Dealer\u2019s trade percentage is consistently or significantly below 90%.[\/vc_toggle][vc_toggle title=&#8221;28. Les courtiers inscrits aupr\u00e8s de l\u2019OCRI doivent-ils, pr\u00e9sentement et suite \u00e0 l\u2019entr\u00e9e en vigueur des modifications \u00e0 la r\u00e8gle T+1 de l\u2019OCRI, soumettre des rapports d\u2019exception \u00e0 l\u2019OCRI en cas de non-respect des exigences d\u2019appariement de 90 %? (29 septembre 2023)&#8221;]Conform\u00e9ment aux r\u00e8gles actuelles de l\u2019OCRI un rapport d\u2019exception doit \u00eatre produit aupr\u00e8s de l\u2019OCRI si le pourcentage de transactions trimestrielles conformes de courtier \u00e0 courtier est moindre que 90 %.\u00a0 Les courtiers continueront \u00e0 produire des rapports d\u2019exception aupr\u00e8s de l\u2019OCRI jusqu\u2019\u00e0 la date de mise en \u0153uvre des modifications de r\u00e8gles propos\u00e9es (avant le<strong> 27\u00a0mai 2024,<\/strong> date de mise en \u0153uvre canadienne T+1).<\/p>\n<p>D\u00e8s que les nouvelles r\u00e8gles seront en vigueur, les courtiers n\u2019auront plus l\u2019obligation de produire un rapport d\u2019exception aupr\u00e8s de l\u2019OCRI, m\u00eame si le pourcentage trimestriel de transactions conformes est inf\u00e9rieur \u00e0 90 %.\u00a0 Cependant, l\u2019OCRI continuera de surveiller les pourcentages d\u2019appariement des transactions de courtiers, chaque trimestre. Selon les donn\u00e9es de chaque soci\u00e9t\u00e9 re\u00e7ues de la CDS, l\u2019OCRI pourra demander un plan d\u2019action, un justificatif ou d\u2019autres informations si le pourcentage de transactions d\u2019un courtier est r\u00e9guli\u00e8rement ou tr\u00e8s inf\u00e9rieur \u00e0 90 %.[\/vc_toggle][vc_toggle title=&#8221;27. Is there a consensus on securities loan recall times with the change to T+1? (September 29, 2023)&#8221;]SIFMA (Securities Industry and Financial Markets Association), the Canadian Securities Lending Association (CASLA), and the Risk Management Association (RMA) met in the summer of 2023 to discuss an acceptable date and time for recalls in a T+1 environment.\u00a0 While securities lending agreements can reflect a specific recall time negotiated by a lender and borrower, the timing of recalls generally defaults to what is in standard securities lending agreements \u2013 usually a master securities lending agreement (MSLA) or global agreement (GMSLA) \u2013 which use language that defaults to a cut-off of close of business or market practice.<\/p>\n<p>In today\u2019s T+2 settlement cycle, close of business is understood to be market close, and market practice for a recall is 3\u00a0p.m. ET on T+2 in the U.S. and Canada. While the SIFMA <em>T+1 Playbook<\/em>, based on U.S. industry input, identified market \u201cbest practice\u201d as moving from 3 p.m. on T+1 to 11:59 p.m. on T for a \u201cT\u201d recall, most legal agreements refer simply to \u201cclose of business\u201d or \u201cmarket practice:\u201d a 3 p.m. cut-off will not change and as of May 27, 2024 will constitute an \u201ceffective T recall.\u201d \u00a0With a 3:00 p.m. ET on T cut-off, borrowers will have at least the last hour of the trading day to process the recall and\/or determine if they need to buy the securities back.<\/p>\n<p>To enforce a later (11:59 p.m.) on T cut-off, legal agreements between the borrower and lender would need to be amended.\u00a0 While agent lenders might like to have until 11:59 p.m. to issue a \u201cT\u201d recall (and might be prepared to make the necessary effort to amend agreements to achieve this), it is believed to be unlikely that borrowers would agree to such a change because they do not have the ability after the close of business on T to settle securities, source additional supply, or purchase securities if needed.<\/p>\n<p>The majority of market participants are understood to be onside with 3 p.m. on T recalls.\u00a0 Moreover, the TMX portal should help streamline the recall process so that more recalls can be entered before the cut-off. Even recalls entered after a 3 p.m. cut-off on T will have benefits as the related automation will alert global desks of the pending recall, so they can try to source additional supply, whether it&#8217;s in the Far East, Europe or elsewhere. Worst-case scenario, notice of the recall will be available first thing on T+1, allowing an earlier start to finding alternative sources if needed.[\/vc_toggle][vc_toggle title=&#8221;27. Y a-t&#8217;il un consensus sur les d\u00e9lais de rappel de pr\u00eats de titres suite \u00e0 la modification \u00e0 T+1? (29 septembre 2023)&#8221;]La <em>Securities Industry and Financial Markets Association <\/em>(SIFMA), l\u2019Association canadienne de pr\u00eateurs de titres (CASLA) et la <em>Risk Management Association<\/em> (RMA) se sont r\u00e9unies cet \u00e9t\u00e9\u00a02023 pour se pencher sur une date et une heure acceptables pour les rappels en contexte\u00a0T+1. Si les ententes aff\u00e9rentes aux pr\u00eats sur titres pr\u00e9voient un d\u00e9lai de rappel sp\u00e9cifique que le pr\u00eateur et l\u2019emprunteur n\u00e9gocient, le d\u00e9lai de rappel est fix\u00e9 par d\u00e9faut, habituellement, dans les ententes standard de pr\u00eat sur titres \u2013 entente-cadre de pr\u00eat sur titres (ECPT) ou une entente-cadre globale de pr\u00eat sur titres (ECGPT) \u2013 pr\u00e9voyant par d\u00e9faut une date limite de cl\u00f4ture des transactions ou des pratiques de march\u00e9.<\/p>\n<p>Quant au cycle de r\u00e8glement\u00a0T+2 actuel, la cl\u00f4ture des transactions est r\u00e9put\u00e9e \u00eatre la cl\u00f4ture du march\u00e9, et la pratique du march\u00e9 pour un rappel est fix\u00e9e \u00e0 15\u00a0h (heure de l\u2019Est) \u00e0 T+2 aux \u00c9tats-Unis et au Canada. Toutefois, le guide\u00a0T+1 de la SIFMA, selon les commentaires du secteur am\u00e9ricain, indique que la \u00ab\u2009meilleure pratique\u2009\u00bb du march\u00e9 est de passer de 15\u00a0h le jour T+1 \u00e0 23\u00a0h\u00a059 le T pour un rappel \u00ab\u2009T\u2009\u00bb, la plupart des ententes l\u00e9gales font simplement r\u00e9f\u00e9rence \u00e0 la \u00ab\u2009cl\u00f4ture des transactions\u2009\u00bb ou \u00e0 la \u00ab\u2009pratique du march\u00e9\u2009\u00bb : la date limite de 15\u00a0h ne sera pas sujette \u00e0 modifications et \u00e0 partir du 27 mai 2024, constituera un \u00ab\u2009rappel T effectif\u2009\u00bb. Si l\u2019heure limite est \u00e9tablie \u00e0 15\u00a0h le T, les emprunteurs disposeront au minimum de la derni\u00e8re heure de la journ\u00e9e de n\u00e9gociation pour traiter le rappel et\/ou d\u00e9terminer le besoin de rachat de titres.<\/p>\n<p>L\u2019application d\u2019une date limite plus tardive (23\u00a0h\u00a059 le T) implique de modifier les ententes l\u00e9gales entre emprunteurs et pr\u00eateurs. Les pr\u00eateurs souhaiteront disposer jusqu\u2019\u00e0 23\u00a0h\u00a059 pour l\u2019\u00e9mission d\u2019un rappel \u00ab\u2009T\u2009\u00bb (et seraient pr\u00eats \u00e0 d\u00e9ployer des efforts pour modifier les ententes \u00e0 cet effet), mais il est peu probable que les emprunteurs acquiescent \u00e0 une telle modification, car il ne leur est pas possible, \u00e0 la cl\u00f4ture du jour T, de r\u00e9gler les titres, de proc\u00e9der \u00e0 l\u2019achat de produits suppl\u00e9mentaires ou de titres, si n\u00e9cessaire.<\/p>\n<p>Les participants au march\u00e9, dans leur grande majorit\u00e9, sont unanimes pour effectuer les rappels \u00e0 15\u00a0h le T. Le portail TMX devrait en outre favoriser la rationalisation du processus de rappel; ainsi, davantage de rappels seront inscrits avant l\u2019heure limite. Les rappels effectu\u00e9s apr\u00e8s l\u2019heure limite de 15\u00a0h le T pr\u00e9senteront tout de m\u00eame des avantages, du fait de l\u2019automatisation connexe notifiant les bureaux internationaux du rappel en cours, dans l\u2019objectif de trouver des sources d\u2019achat suppl\u00e9mentaires, en Extr\u00eame-Orient, en Europe ou d\u2019autres r\u00e9gions du monde. Dans le moins favorable des sc\u00e9narios, l\u2019avis de rappel sera lanc\u00e9 d\u00e8s la premi\u00e8re heure le jour T+1, afin de rechercher plus t\u00f4t d\u2019autres sources d\u2019achat le cas \u00e9ch\u00e9ant.[\/vc_toggle][vc_toggle title=&#8221;26. Are there T+1 changes to consider with respect to derivatives products (documentation, processing, transactions \u2018in-flight,\u2019 where agreements span May 27, 2024, etc.)? (September 29, 2023)&#8221;]<strong>Are U.S. derivatives moving to T+1?<\/strong><\/p>\n<p>Yes, no, and maybe. If a derivative is DTC-eligible and there is otherwise no exemption, then it will move to T+1. Section 3(a)(10) of the <em>Exchange<\/em> <em>Act<\/em> includes security-based swaps and options, and excludes an exempted security (indeed, security-based swaps are exempted). Even if a derivative were exempt, it still may move to T+1 by agreement or market practice. For example, over-the-counter (OTC) options are not mandated to follow T+1, but are expected to align with listed options, which must move to T+1.<\/p>\n<p><strong>What derivatives will move to T+1?<\/strong><\/p>\n<p>At a SIFMA-hosted T+1 presentation by ISDA representatives, participants heard that, as a rule of thumb, firms could expect depository-eligible securities that moved from T+3 to T+2 to likely move from T+2 to T+1 to keep cash flows aligned (avoiding increased capital, pre-funding, or credit costs) and to reduce business risk between the derivative and corresponding hedge transaction as much as possible. The OTC market will follow suit to keep cash flows aligned as much as possible, and to avoid basis risk between securities and the related derivative instruments. Even for formal exceptions to the T+1 rule (for example, security-based swaps, which have been exempted), many parties may still choose to adopt T+1 to avoid mismatched settlement cycles.<\/p>\n<ul>\n<li><strong><em>Equity<\/em><\/strong> derivatives are expected to be most impacted by T+1 while classes like <strong><em>credit<\/em><\/strong> derivatives are not expected to be impacted by T+1. Other asset classes may be affected to a greater or lesser extent and there may be further discussions among market participants. For example, ISDA equity working groups could discuss exotic\/highly structured derivatives, including non-standard non-linear transaction types (e.g., barrier and compound options).<\/li>\n<li><strong><em>Other<\/em><\/strong> asset classes that may be affected to some extent are those where a market participant may want to align payment dates of an interest rate swap with the settlement of the security. In the case of U.S. dollar for SOFR trading (Secured Overnight Financing Rate, a benchmark rate chosen to replace USD LIBOR), the derivatives convention is \u2018compounded in arrears.\u2019 SOFR is published on T+1, with the last observation made on the termination date when payment is due, providing little to no notice of the amount of interest due. Fortunately, there are new ISDA lookback, observation shift, and lockout conventions that have now been in place for several years. They are reflected in industry documentation, which has been deployed and is in use by the market. These allow observation of a rate so that the interest amount can be determined <em>ahead<\/em> of the payment date, allowing for certainty as to the amount and time to make that payment on T+1. Firms also may elect <em>not<\/em> to alter the observation of the rate, but to apply instead a payment delay to the floating amount, agreed on a trade-by-trade basis.<\/li>\n<\/ul>\n<p><strong>Will there be changes to derivatives documentation, processes, and systems for the move to T+1? <\/strong><\/p>\n<p>The T+1 impact on derivatives <strong>documentation<\/strong> is expected to be minimal. ISDA updated and futureproofed\u2019 equity derivative agreements in 2017 at members\u2019 request (replaced hard-coded settlement cycle references with more generic wording). There was limited uptake by market participants of the new protocol at the time as, instead, most chose to amend existing OTC equity documentation on a blockchain basis or otherwise. No change is seen as needed to the master documentation for T+1 at this time. Industry participants should, however, check if payment dates they specify in their confirmations or product descriptions require an update. Also, participants may have to look at updating any specific calendar dates in their Master Confirmation Agreements (MCAs) for products such as equity options (as well as credit default and variance swaps) in several jurisdictions.<\/p>\n<p>Regarding <strong>processing<\/strong>:<\/p>\n<ul>\n<li>There may be risk-booking systems and settlement system updates to make to ensure correct payment timelines are captured and payments can\/will be made in the reduced timeframe.<\/li>\n<li>Market participants also should consider what business day convention applies in the time zones of counterparties.<\/li>\n<li>Physical- and cash-settled derivatives should be aligned.<\/li>\n<\/ul>\n<p>While technology solutions are clearly desirable, efforts to identify and implement new systems should not be underestimated. In the meantime, ISDA is working on an operational practice document that should help with some unnecessary problems, for example, those caused by (poor management, communication, and reconfirmation of standing settlement instructions (SSIs) to improve the ability to make payments on a timely basis.<\/p>\n<p><strong>Will ISDA facilitate remediation of legacy trades \u2013 transactions outstanding as of May 26, 2024 in Canada\/May 27, 2024 in the U.S.? <\/strong><\/p>\n<p>Yes, ISDA, as it did in the case of the 2017 move to T+2, can facilitate co-ordination (likely two-three months before transition) of what firms expect to do with respect to outstanding (live) transactions executed before May 26\/27 2024 and continuing afterward. Firms have not yet begin stating their preferences, and there are various issues to consider, including whether a market participant wants to spend time remediating a transaction that will expire soon versus transactions that will remain on the books for two or three years after. ISDA expects to circulate a table (see attached example) listing equity options, accumulators, and equity\/variance swaps\/dividend swaps, that members could use to record their own \u2013 and better understand other \u2013 firms\u2019 intentions regarding the settlement cycle of particular products and business events.<\/p>\n<p><strong>Example of ISDA Table to Capture Approaches to T+1 Transition<\/strong><\/p>\n<table width=\"679\">\n<tbody>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>US &amp; CANADA &#8211; TRANSITION TO T+1 SETTLEMENT<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\"><strong>Dealer vs Dealer<\/strong><\/td>\n<td colspan=\"3\" width=\"560\"><strong>Settlement cycle for existing trades entered into Prior to [DATE TBC, 2024]<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\"><strong>Event<\/strong><\/td>\n<td width=\"165\"><strong>Scheduled Eq and Funding &amp; Expiry Cash flows\u00a0 (if applicable)<\/strong><\/td>\n<td width=\"157\"><strong>Unwinds \/ Upzise \/ (if applicable)<\/strong><\/td>\n<td width=\"238\"><strong>Physical delivery at expiry (if applicable)<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Equity Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Equity Options<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Variance Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Dividend Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Accumulators \/ Deccumulators<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Other<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\"><strong>Dealer vs Client<\/strong><\/td>\n<td colspan=\"3\" width=\"560\"><strong>Settlement cycle for existing trades entered into Prior to [DATE TBC, 2024]<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\"><strong>Event<\/strong><\/td>\n<td width=\"165\"><strong>Scheduled Eq and Funding &amp; Expiry Cash flows\u00a0 (if applicable)<\/strong><\/td>\n<td width=\"157\"><strong>Unwinds \/ Upzise\u00a0 (if applicable)<\/strong><\/td>\n<td width=\"238\"><strong>Physical delivery at expiry (if applicable)<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Equity Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Equity Options<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Variance Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Dividend Swaps<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Other<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Single Share<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td width=\"120\">Indices<\/td>\n<td width=\"165\"><\/td>\n<td width=\"157\"><\/td>\n<td width=\"238\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Additional information: <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_toggle][vc_toggle title=&#8221;26. Y a-t-il des changements T+1 \u00e0 \u00e0 envisager en ce qui concerne des produits d\u00e9riv\u00e9s (documentation, traitement, transactions en cours lorsque les ententes chevauchent la date du 27 mai 2024, etc.)? (29 septembre 2023)&#8221;]<strong>Les produits d\u00e9riv\u00e9s am\u00e9ricains passent-ils \u00e0 T+1?<\/strong><\/p>\n<p>Oui, non et peut-\u00eatre. Si un produit d\u00e9riv\u00e9 est admissible \u00e0 la DTC et non dispens\u00e9, il passera \u00e0 T+1. La section 3(a)(10) du Exchange Act englobe les swaps bas\u00e9s sur des titres et les options, et exclut les titres dispens\u00e9s (en effet, les swaps bas\u00e9s sur des titres sont dispens\u00e9s). Advenant qu\u2019un produit d\u00e9riv\u00e9 soit dispens\u00e9, il pourrait passer \u00e0 T+1 en vertu d\u2019une entente ou d\u2019une pratique de march\u00e9. Par exemple, les options de gr\u00e9 \u00e0 gr\u00e9 n\u2019ont pas l\u2019obligation de suivre le cycle\u00a0T+1, mais leur alignement sur les options cot\u00e9es, passant \u00e0 T+1, est attendu.<\/p>\n<p><strong>Quels produits d\u00e9riv\u00e9s passeront \u00e0 T+1?<\/strong><\/p>\n<p>Lors d\u2019une pr\u00e9sentation de l\u2019ISDA sur T+1 organis\u00e9e par la SIFMA, les participants ont appris que r\u00e8gle g\u00e9n\u00e9rale, les soci\u00e9t\u00e9s s\u2019attendront \u00e0 ce que les titres admissibles au d\u00e9p\u00f4t et pass\u00e9s de T+3 \u00e0 T+2 passent sans doute de T+2 \u00e0 T+1 dans l\u2019objectif du maintien de flux de tr\u00e9sorerie align\u00e9s (\u00e9vitant une hausse du capital, du pr\u00e9financement ou des co\u00fbts de cr\u00e9dit) et de la r\u00e9duction du risque commercial entre l\u2019instrument d\u00e9riv\u00e9 et la transaction de couverture correspondante. Le march\u00e9 de gr\u00e9 \u00e0 gr\u00e9 proc\u00e9dera ainsi dans l\u2019objectif du maintien de flux de tr\u00e9sorerie aussi align\u00e9s que possible et pour \u00e9viter le risque de base entre les titres et les instruments d\u00e9riv\u00e9s correspondants. M\u00eame pour les exceptions formelles \u00e0 la r\u00e8gle de T+1 (par exemple, les swaps bas\u00e9s sur des titres, exempt\u00e9s), plusieurs pourraient encore choisir d\u2019adopter le cycle\u00a0T+1 pour \u00e9viter un cycle de r\u00e8glement non synchronis\u00e9.<\/p>\n<ul>\n<li>Les d\u00e9riv\u00e9s d\u2019actions sont susceptibles de subir les effets les plus marqu\u00e9s \u00e0 T+1, tandis que des cat\u00e9gories comme les d\u00e9riv\u00e9s de cr\u00e9dit ne devraient pas \u00eatre touch\u00e9es \u00e0 T+1. D\u2019autres cat\u00e9gories d\u2019actifs seraient plus ou moins affect\u00e9es et les intervenants du march\u00e9 devront en discuter davantage. Par exemple, les groupes de travail de l\u2019ISDA sur les actions pourraient se pencher sur les d\u00e9riv\u00e9s exotiques\/hautement structur\u00e9s, notamment les types de transactions non lin\u00e9aires et non standard (comme les options \u00e0 barri\u00e8re et les options compos\u00e9es).<\/li>\n<li>D\u2019autres classes d\u2019actifs subiront de possibles r\u00e9percussions, notamment lorsqu\u2019un intervenant du march\u00e9 d\u00e9sire aligner les dates de paiement d\u2019un swap de taux d\u2019int\u00e9r\u00eat sur le r\u00e8glement du titre. Pour le dollar am\u00e9ricain et les transactions \u00e0 taux SOFR (<em>Secured Overnight Financing Rate<\/em> \u2013 taux de r\u00e9f\u00e9rence choisi en remplacement du LIBOR $US), l\u2019entente sur les produits d\u00e9riv\u00e9s est &#8220;compos\u00e9e \u00e0 terme \u00e9chu&#8221;. Le taux SOFR est publi\u00e9 \u00e0 T+1, la derni\u00e8re observation \u00e9tant faite \u00e0 la date d\u2019\u00e9ch\u00e9ance, au moment ou le r\u00e8glement est d\u00fb, mais le montant des int\u00e9r\u00eats dus ne peut \u00eatre connu. Fort heureusement, de nouvelles conventions de l\u2019ISDA en mati\u00e8re de retour sur investissement, de d\u00e9calage d\u2019observation et de cl\u00f4ture, sont en vigueur depuis quelques ann\u00e9es. Elles se refl\u00e8tent dans la documentation sectorielle distribu\u00e9e et utilis\u00e9e par le march\u00e9. Ces ententes permettent l\u2019observation d\u2019un taux afin que le montant des int\u00e9r\u00eats soit \u00e9tabli avant la date de r\u00e8glement, d\u00e9terminant avec certitude le montant et le moment du r\u00e8glement \u00e0 T+1. Les soci\u00e9t\u00e9s peuvent \u00e9galement choisir de ne pas modifier l\u2019observation du taux, mais d\u2019appliquer plut\u00f4t un d\u00e9lai de r\u00e8glement au montant flottant, convenu selon le cas.<\/li>\n<\/ul>\n<p><strong>Des modifications seront-elles apport\u00e9es \u00e0 la documentation sur les produits d\u00e9riv\u00e9s, aux processus et aux syst\u00e8mes pour la transition \u00e0 T+1? <\/strong><\/p>\n<p>Les effets du cycle\u00a0T+1 sur la documentation relative aux produits d\u00e9riv\u00e9s s\u2019annoncent minimes. En 2017, l\u2019ISDA a mis \u00e0 jour et a revu, en pr\u00e9vision du futur, les ententes aff\u00e9rentes aux d\u00e9riv\u00e9s d\u2019actions \u00e0 la demande des membres (r\u00e9f\u00e9rence au cycle de r\u00e8glement encod\u00e9e remplac\u00e9e par un libell\u00e9 g\u00e9n\u00e9rique). L\u2019adoption du nouveau protocole par les intervenants du march\u00e9 a \u00e9t\u00e9 limit\u00e9e \u00e0 l\u2019\u00e9poque, la plupart d\u2019entre eux modifiant plut\u00f4t la documentation existante sur les actions de gr\u00e9 \u00e0 gr\u00e9 selon les blocs de cha\u00eene ou autrement. Aucune modification ne doit n\u00e9cessairement \u00eatre apport\u00e9e \u00e0 la documentation principale pour T+1 pr\u00e9sentement. Les participants sectoriels devront, cependant, s\u2019assurer que les dates de r\u00e8glement inscrites dans leurs confirmations ou descriptions de produits soient mise \u00e0 jour. Les intervenants devront par ailleurs mettre \u00e0 jour toute date calendaire particuli\u00e8re apparaissant aux ententes principales de confirmation (EPC) pour des produits comme les options sur actions (ainsi que les swaps de d\u00e9faut de cr\u00e9dit et de variance) dans plusieurs juridictions.<\/p>\n<p>Au sujet du <strong>processus <\/strong>:<\/p>\n<ul>\n<li>Des mises \u00e0 jour aux m\u00e9canismes de souscription de risques et de syst\u00e8mes de r\u00e8glement peuvent se r\u00e9v\u00e9ler n\u00e9cessaires afin que les d\u00e9lais de paiement corrects soient pris en consid\u00e9ration et que les r\u00e8glements puissent \u00eatre effectu\u00e9s et le soient dans les d\u00e9lais raccourcis.<\/li>\n<li>Les intervenants du march\u00e9 doivent aussi s\u2019interroger sur les modalit\u00e9s de jour ouvrable s\u2019appliquant aux fuseaux horaires des contreparties.<\/li>\n<li>Les produits d\u00e9riv\u00e9s r\u00e9gl\u00e9s physiquement et en liquidit\u00e9s doivent faire l\u2019objet d\u2019un alignement.<\/li>\n<\/ul>\n<p>Les solutions technologiques s\u2019av\u00e8rent de toute \u00e9vidence souhaitables, et il ne faut pas sous-estimer les efforts d\u00e9ploy\u00e9s pour d\u00e9terminer et mettre en \u0153uvre de nouveaux syst\u00e8mes. Dans l\u2019intervalle, l\u2019ISDA s\u2019applique \u00e0 concevoir un document sur les pratiques op\u00e9rationnelles visant la r\u00e9solution de certains probl\u00e8mes inutiles, par exemple les difficult\u00e9s de mauvaise gestion, de communication et de reconfirmation de consignes permanentes de r\u00e8glement (CPR) visant \u00e0 am\u00e9liorer la capacit\u00e9 de proc\u00e9der \u00e0 des paiements en temps utiles).<\/p>\n<p><strong>L\u2019ISDA facilitera-t-elle la correction d\u2019anciennes transactions \u2013 les transactions en cours au 26\u00a0mai 2024 au Canada et au 27\u00a0mai 2024 aux \u00c9tats-Unis?<\/strong><\/p>\n<p>Oui, l\u2019ISDA, comme ce fut le cas lors de la transition \u00e0 T+2 de 2017, peut faciliter la coordination (deux ou trois mois avant la transition) des actions de soci\u00e9t\u00e9s relativement aux transactions en cours (en direct) ex\u00e9cut\u00e9es avant les 26 et 27\u00a0mai 2024 et se poursuivant. Les soci\u00e9t\u00e9s n\u2019ont pas indiqu\u00e9 pour l\u2019instant leurs pr\u00e9f\u00e9rences; plusieurs questions sont \u00e0 prendre en compte, notamment si un intervenant du march\u00e9 souhaite se consacrer \u00e0 corriger une transaction \u00e0 \u00e9ch\u00e9ance rapide comparativement \u00e0 des transactions inscrites dans les livres pour deux ou trois ann\u00e9es apr\u00e8s. L\u2019ISDA pr\u00e9voit de publier un tableau (exemple ci-joint) \u00e9num\u00e9rant les options sur actions, les contrats \u00e0 terme de cumul et les swaps d\u2019actions, les swaps de variance et les swaps de dividendes, \u00e0 l\u2019intention des membres pour inscrire leurs intentions \u2013 et mieux comprendre celles des autres soci\u00e9t\u00e9s \u2013 au sujet du cycle de r\u00e8glement de produits et d\u2019\u00e9v\u00e9nements commerciaux particuliers.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Exemple de tableau de l\u2019ISDA pr\u00e9sentant les approches de la transition \u00e0 T+1<\/strong><\/p>\n<table width=\"1359\">\n<tbody>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>\u00c9TATS-UNIS ET CANADA \u2013 R\u00c8GLEMENT AVEC LE PASSAGE \u00c0 T+1 <\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\"><strong>Courtier vs. courtier<\/strong><\/td>\n<td colspan=\"3\" width=\"548\"><strong>Cycle de r\u00e8glement pou les titres existants inscrits avant le [DATE 2024]<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\"><strong>\u00c9v\u00e9nement<\/strong><\/td>\n<td width=\"180\"><strong>Flux de tr\u00e9sorerie pr\u00e9vus pour les capitaux propres, le financement et l\u2019\u00e9ch\u00e9ance (le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"130\"><strong>Baisse\/Hausse <\/strong><\/p>\n<p><strong>(le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"238\"><strong>Livraison physique \u00e0 l\u2019\u00e9ch\u00e9ance <\/strong><\/p>\n<p><strong>(le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps sur actions<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Options sur actions<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps de variance<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps sur dividendes<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Contrats \u00e0 terme de cumul et d\u00e9cumul<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Autres<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\"><strong>Courtier vs. client<\/strong><\/td>\n<td colspan=\"3\" width=\"548\"><strong>Cycle de r\u00e8glement pour les titres existants inscrits avant [DATE\u00a0 2024]<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\"><strong>\u00c9v\u00e9nement <\/strong><\/td>\n<td width=\"180\"><strong>Flux de tr\u00e9sorerie pr\u00e9vus pour les capitaux propres, le financement et l\u2019\u00e9ch\u00e9ance <\/strong><\/p>\n<p><strong>(le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"130\"><strong>Baisse\/Hausse<\/strong><\/p>\n<p><strong>(le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"238\"><strong>Livraison physique \u00e0 l\u2019\u00e9ch\u00e9ance<\/strong><\/p>\n<p><strong>(le cas \u00e9ch\u00e9ant)<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps sur actions<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Options sur actions<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps de variance<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Swaps sur dividendes<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Autres<\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Action individuelle<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td width=\"132\">Indices<\/td>\n<td width=\"180\"><\/td>\n<td width=\"130\"><\/td>\n<td width=\"238\"><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" width=\"679\"><strong>Information suppl\u00e9mentaire : <\/strong><\/td>\n<td width=\"679\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_toggle][vc_toggle title=&#8221;25. What types of trades are subject to matching requirements and what are the requirements of NI 24-101? (September 29, 2023)&#8221;]<\/p>\n<table>\n<thead>\n<tr>\n<td width=\"208\"><strong>Question<\/strong><\/td>\n<td width=\"512\"><strong>Answer<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"208\">1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What trades are subject to trade matching requirements under NI 24-101 <em>Institutional Trade Matching and Settlement<\/em>?<\/td>\n<td width=\"512\">Institutional trade matching (\u201cITM\u201d) trades are trades for <strong>institutional client accounts<\/strong> that permit DAP\/RAP<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> through CDS, and settlement is completed by a custodian (i.e. other than the dealer executing the trade).<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the NI 24-101 trade matching requirements for registered dealers and advisers?<\/td>\n<td width=\"512\">They cannot execute\/give an order to execute an ITM trade unless they have, maintain and enforce <strong>policies and procedures<\/strong> designed to <strong>match<\/strong> these trades as soon as practical after the trade is executed and no later than the \u201cestablished deadline\u201d.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the NI 24-101 documentation requirements for registered dealers and advisers?<\/td>\n<td width=\"512\">They cannot open an account for ITM trades or accept an order to execute an ITM trade for an account unless they have <strong>policies and procedures<\/strong> to encourage each trade matching party<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> to enter into a <strong>trade matching agreement<\/strong> or provide a <strong>trade matching statement<\/strong>.<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 There is an updated Trade Matching Statement (\u201cTMS\u201d) that has been approved by the industry \u2013 do we need to obtain new TMS\u2019s from existing clients?<\/td>\n<td width=\"512\">There is a new TMS that has been approved by the CCMA and reviewed and endorsed by CIRO. The TMS is available on both the CCMA<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a> and the CIRO<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a> websites. For onboarding <strong>new<\/strong> clients, the <strong>updated<\/strong> TMS should be used.<\/p>\n<p>There is <strong>no<\/strong> requirement to obtain an updated TMS from <strong>existing<\/strong> clients.<\/p>\n<p>Firms should refer to NI 24-101 <em>Institutional Trade Matching and Settlement<\/em> and Companion Policy 24-101CP <em>Institutional Trade Matching and Settlement<\/em> for specific compliance obligations and expectations<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do registered dealers and advisers have to file exception reports?<\/td>\n<td width=\"512\">NI 24-101 has a requirement that if matched ITM trades (for both value and volume) for a calendar quarter are less than 90% for the \u201cestablished deadline\u201d, and exception report (including why the required matching was not achieved and the steps to be undertaken to correct) has to be provided to the securities regulatory authorities.<\/p>\n<p>However, there was a 3-year <strong>moratorium<\/strong> on this exception reporting commencing July 1, 2020. This moratorium was extended on July 2, 2023 and will end on the earlier of adoption of amendments to NI 24-101 (expected to coincide with the industry\u2019s transition on May 27, 2024) or January 1, 2025.<\/p>\n<p>Note that this exception reporting requirement has been <strong>proposed to be<\/strong> <strong>repealed<\/strong> by the CSA meaning the exception reports would no longer be required.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> Further note that the CSA has said this does not relieve firms from their other NI 24-101 compliance responsibilities.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What reporting must the clearing agency do?<\/td>\n<td width=\"512\">It must deliver reporting to the securities regulatory authorities no later than 30 days after the end of a calendar quarter. The report includes <strong>aggregated matching trade statistics<\/strong> calculated as per NI 24-101. CDS also publishes aggregate statistics on its website.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are the settlement requirements under NI 24-101?<\/td>\n<td width=\"512\">Dealers must have and enforce trade settlement policies and procedures so a trade settles as per the standard settlement date established by CIRO or the marketplace on which the trade was executed (unless the counterparties agreed to a different settlement date); otherwise the trade may not be executed.<\/p>\n<p>Canada is moving to T+1 in concert with the United States; CIRO and marketplace rules will be aligned for this transition.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are there any types of trades that are exempted from the trade matching or settlement requirements?<\/td>\n<td width=\"512\">Trades in the following are not subject to the NI 24-101 requirements:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 newly issued securities or for which a prospectus is required to be sent or delivered,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 a security to the issuer of the security,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 connection with a take-over bid, issuer bid, amalgamation, merger, reorganization, arrangement or similar transaction,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 accordance with the terms of conversion, exchange or exercise of a security previously issued by an issuer,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 securities lending, repurchase, reverse repurchase or similar financing transactions,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 investment funds (purchases governed by Part 9 or redemptions governed by Part 10 of NI 81-102 <em>Investment Funds<\/em>),<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 securities to be settled outside Canada,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 options, futures, or similar derivative trades, and<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 negotiable promissory notes, commercial paper or similar short-term debt obligation that, in the normal course, would settle in Canada on T.<\/p>\n<p>Note that trades in these securities may settle on a T+1 or shorter basis in any event as per their contractual or other requirements.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How do CIRO rules apply in regards to the NI 24-101 requirements?<\/td>\n<td width=\"512\">If an SRO has rules dealing with the same subject matter as the NI 24-101 requirements (and these rules were vetted by the securities regulatory authorities), provided the SRO member complies with the SRO rules, the NI 24-101 requirements will not apply.<\/p>\n<p>As noted in the following, CIRO has rules for broker-to-broker trade matching. NI 24-101 will apply to ITM trades as CIRO does not have ITM rules covering the same subject matter as the NI 24-101 requirements.<\/p>\n<p>There are also CIRO requirements for ITM matching with respect to written trade confirmation suppression as described below.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">10.\u00a0\u00a0\u00a0 Does CIRO have trade matching rules?<\/td>\n<td width=\"512\">Yes. The CIRO rules (named Investment Dealer and Partially Consolidated Rules) have matching requirements for non-exchange trades. These trades are broker-to-broker (i.e. between two dealers), in CDS-eligible securities that have not been submitted to CDS\u2019s CNS service.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a><\/p>\n<p>For written trade confirmation suppression, CIRO also has requirements for ITM trade matching as described below.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">11.\u00a0\u00a0\u00a0 What is the CIRO trade matching reporting requirement?<\/td>\n<td width=\"512\">Currently CIRO requires exception reporting (including an action plan to remedy) where a dealer\u2019s broker-to-broker trade matching falls below 90% for a quarter.<\/p>\n<p>The percentage is calculated by dividing the total of a quarter\u2019s compliant trades (excluding \u201cdon\u2019t know\u201d trades) by the total of a broker\u2019s non-exchange trades. Trades entered (or accepted) at or before 6:00 p.m. are considered compliant trades.<\/p>\n<p>Similar to the proposed repeal of the NI 24-101 quarterly reporting by registered dealers and advisers, CIRO has <strong>proposed to repeal<\/strong> the broker-to-broker exception reporting for non-exchange trades where a dealer\u2019s broker-to-broker trade matching falls below 90% for a quarter; however where the dealer\u2019s matching is below 90% for more than two consecutive quarters, CIRO may pursue disciplinary action.<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a><\/p>\n<p>CIRO will continue to monitor the statistics it receives from CDS for these trades.<\/td>\n<\/tr>\n<tr>\n<td width=\"208\">12.\u00a0\u00a0\u00a0 How does trade matching impact written confirmations under CIRO rules?<\/td>\n<td width=\"512\">Currently, a dealer does not need to send written trade confirmations to a client with a DAP\/RAP account if, for:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ITM trades, the dealer has a quarterly compliant trade percentage &gt;= 85% for at least two of the last four quarters<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 broker-to-broker trades, the dealer has been compliant for at least two of the last four quarters, and for any non-compliant reports filed in this period, the quarterly compliant trade percentage has not been less than 85%<\/p>\n<p>As noted in Question 11, CIRO has proposed to repeal the requirement to file non-compliant reports for matching falling below 90% in a quarter. Dealers will still be required to maintain a quarterly compliant trade percentage of greater than or equal to 85% for at least two of the last four quarters for both ITM trades and broker-to-broker trades, in order to suppress trade confirmations.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> \u00a0 Delivery Against Payment &#8211; Receipt Against Payment<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u00a0 Currently by noon on T+1; CSA staff recommended the CSA approve an amendment to 3:59 a.m. on T+1. <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2023-08\/csa_20230810_24-319_update-staff-recommendation.pdf\">https:\/\/www.osc.ca\/sites\/default\/files\/2023-08\/csa_20230810_24-319_update-staff-recommendation.pdf<\/a>. The industry has agreed to a best practice of ITM trade entry by 7:30 p.m. on T.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> \u00a0 Registered advisors, registered dealers, institutional investors, and custodians.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> \u00a0 <a href=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Standardized-Trade-Matching-Statement-NI-24-101-September-26-2023.docx\">Standardized Trade Matching Statement-NI 24-101<\/a><strong> (September 26, 2023; in MS Word)<\/strong><\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> \u00a0 CIRO Rules Bulletin 23-0141 \u2013 <a href=\"https:\/\/www.ciro.ca\/news-room\/publications\/national-instrument-24-101-trade-matching-statement\">National Instrument 24-101 trade-matching statement<\/a> (with fillable pdf)<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a>\u00a0\u00a0 <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2023-06\/csa_20230615_24-930.pdf\">https:\/\/www.osc.ca\/sites\/default\/files\/2023-06\/csa_20230615_24-930.pdf<\/a>.<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> \u00a0 CIRO Rule subsection 4751(1). Non-exchange trades are \u201c[a]ny trade in a CDS eligible security (excluding new issue trades and repurchase agreement transactions and reverse repurchase agreement transactions) between two Dealer Members, which has not been submitted to the CDS continuous net settlement service by a Marketplace or an acceptable foreign marketplace. A non\u2010exchange trade includes the dealer to dealer portion of a\u00a0 jitney trade that is executed between two Dealer Members that is not reported by a Marketplace or an acceptable foreign marketplace\u201d<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> \u00a0 <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2023-04\/newsro_20230420_notice.pdf\">https:\/\/www.osc.ca\/sites\/default\/files\/2023-04\/newsro_20230420_notice.pdf<\/a>.[\/vc_toggle][vc_toggle title=&#8221;25. Quels types de transactions sont soumises \u00e0 l&#8217;obligation d&#8217;appariement et quelles sont les exigences de la NC 24-101? (29 septembre 2023)&#8221;]<\/p>\n<table>\n<thead>\n<tr>\n<td width=\"207\"><strong>Question<\/strong><\/td>\n<td width=\"511\"><strong>R\u00e9ponse<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"207\">1.\u00a0\u00a0\u00a0\u00a0\u00a0 Quelles transactions sont soumises \u00e0 l&#8217;obligation d&#8217;appariement en vertu de la <em>Norme canadienne (NC) 24-101 sur l&#8217;appariement et le r\u00e8glement des op\u00e9rations institutionnelles<\/em>?<\/td>\n<td width=\"511\">L\u2019appariement des transactions institutionnelles (ATI) d\u00e9signe une transaction pour un <strong>compte client institutionnel<\/strong> qui permet la LCP\/RCP<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> par le biais de la CDS, et dont le r\u00e8glement est effectu\u00e9 par un d\u00e9positaire (autre que le courtier qui ex\u00e9cute la transaction).<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Quelles sont les exigences de la NC\u00a024-101 en mati\u00e8re d\u2019appariement des transactions pour les courtiers et les conseillers inscrits?<\/td>\n<td width=\"511\">La soci\u00e9t\u00e9 ne peut ex\u00e9cuter ni donner l\u2019ordre d\u2019ex\u00e9cuter une transaction ATI \u00e0 moins d\u2019avoir, de maintenir et d\u2019appliquer des politiques et des proc\u00e9dures con\u00e7ues pour l\u2019appariement de ces transactions aussit\u00f4t que possible apr\u00e8s l\u2019ex\u00e9cution de la transaction et au plus tard \u00e0 la \u00ab\u2009date limite \u00e9tablie\u2009\u00bb.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Quelles sont les exigences documentaires de la NC\u00a024-101 pour les courtiers et les conseillers inscrits?<\/td>\n<td width=\"511\">La soci\u00e9t\u00e9 ne peut pas ouvrir de compte pour des transactions ATI ni accepter un ordre d\u2019ex\u00e9cution d\u2019une transaction ATI pour un compte, \u00e0 moins de disposer de politiques et de proc\u00e9dures visant \u00e0 encourager chaque partie<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> \u00e0 l\u2019appariement de transactions \u00e0 conclure une entente d\u2019appariement de transactions ou \u00e0 fournir une d\u00e9claration d\u2019appariement de transactions.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Une d\u00e9claration d\u2019appariement de transactions (\u00ab\u2009DAT\u2009\u00bb) mise \u00e0 jour a \u00e9t\u00e9 approuv\u00e9e par le secteur &#8211; devons-nous obtenir de nouvelles DAT de nos clients existants?<\/td>\n<td width=\"511\">Une nouvelle DAT a \u00e9t\u00e9 approuv\u00e9e par l\u2019ACMC et examin\u00e9e et approuv\u00e9e par l\u2019Organisme canadien de r\u00e9glementation des investissements (OCRI). La DAT est pr\u00e9sent\u00e9e sur les sites Internet de l\u2019ACMC<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a> et l\u2019OCRI<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a>. Pour int\u00e9grer de nouveaux clients, la DAT mise \u00e0 jour doit \u00eatre utilis\u00e9e.<\/p>\n<p>Une DAT mise \u00e0 jour n\u2019est pas exig\u00e9e pour les clients existants.<\/p>\n<p>Les soci\u00e9t\u00e9s doivent se r\u00e9f\u00e9rer \u00e0 la NC\u00a024-101 sur l\u2019appariement et le r\u00e8glement des op\u00e9rations institutionnelles et l\u2019instruction compl\u00e9mentaire\u00a024-101CP sur l\u2019appariement et le r\u00e8glement des op\u00e9rations institutionnelles pour en savoir plus sur les obligations et les attentes sp\u00e9cifiques de conformit\u00e9.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les courtiers et conseillers inscrits doivent-ils produire des d\u00e9clarations d\u2019exception?<\/td>\n<td width=\"511\">La NC\u00a024-101 pr\u00e9voit que si les transactions ATI appari\u00e9es (en valeur et en volume) pour un trimestre civil sont inf\u00e9rieures \u00e0 90\u00a0% dans le \u00ab\u2009d\u00e9lai \u00e9tabli\u2009\u00bb, un rapport d\u2019exception (indiquant les raisons pour lesquelles l\u2019appariement exig\u00e9 n\u2019a pas \u00e9t\u00e9 r\u00e9alis\u00e9 et les mesures correctives) doit \u00eatre fourni aux autorit\u00e9s de r\u00e9glementation des march\u00e9s de capitaux.<\/p>\n<p>Cependant, un <strong>moratoire<\/strong> de trois ans sur cette d\u00e9claration d\u2019exception a \u00e9t\u00e9 institu\u00e9 au 1<sup>er<\/sup>\u00a0juillet 2020, puis prolong\u00e9 le 2\u00a0juillet 2023 et il prendra fin \u00e0 la date la plus proche entre l\u2019adoption des modifications de la NC\u00a024-101 (qui devrait co\u00efncider avec la transition sectorielle du 27\u00a0mai 2024) et le 1<sup>er<\/sup>\u00a0janvier 2025.<\/p>\n<p>\u00c0 noter d\u2019une part que les ACVM ont <strong>propos\u00e9 d\u2019abroger<\/strong> l\u2019obligation de d\u00e9claration d\u2019exception; aussi, les d\u00e9clarations d\u2019exception ne seraient plus exig\u00e9es<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a>.\u00a0 D\u2019autre part, les ACVM indiquent que les soci\u00e9t\u00e9s ne sont pas pour autant lib\u00e9r\u00e9es de leurs autres responsabilit\u00e9s de conformit\u00e9 \u00e0 la NC\u00a024-101.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Quels rapports doivent \u00eatre produits par l\u2019organisme de compensation?<\/td>\n<td width=\"511\">L\u2019organisme doit produire un rapport pour les autorit\u00e9s de r\u00e9glementation au plus tard 30 jours apr\u00e8s la fin d\u2019un trimestre civil. Le rapport fait \u00e9tat de <strong>statistiques globales sur les transactions appari\u00e9es<\/strong> calcul\u00e9es conform\u00e9ment \u00e0 la NC\u00a024-101. La CDS publie \u00e9galement des statistiques globales sur son site Web.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Quelles sont les exigences de r\u00e8glement en vertu de la NC\u00a024-101?<\/td>\n<td width=\"511\">Les courtiers doivent se doter de politiques et des proc\u00e9dures de r\u00e8glement des transactions et les appliquer de sorte qu&#8217;une transaction soit r\u00e9gl\u00e9e \u00a0conform\u00e9ment \u00e0 la date de r\u00e8glement standard \u00e9tablie par l\u2019OCRI ou le march\u00e9 sur lequel la transaction a \u00e9t\u00e9 ex\u00e9cut\u00e9e (\u00e0 moins que les parties s\u2019entendent sur une date diff\u00e9rente de r\u00e8glement); autrement, la transaction pourrait ne pas aboutir.<\/p>\n<p>Le Canada passe \u00e0 T+1 de concert avec les \u00c9tats-Unis; les r\u00e8gles de l\u2019OCRI et des places de march\u00e9 s\u2019aligneront \u00e0 cette transition.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Quelles cat\u00e9gories de transactions sont exempt\u00e9es des exigences d\u2019appariement ou de r\u00e8glement?<\/td>\n<td width=\"511\">Les transactions suivantes ne sont pas soumises aux exigences de la NC\u00a024-101 :<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les titres nouvellement \u00e9mis ou pour lesquels un prospectus doit \u00eatre envoy\u00e9 ou livr\u00e9<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Un titre \u00e0 l\u2019\u00e9metteur de titre<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Une offre publique d\u2019achat, d\u2019une offre publique de rachat, d\u2019une fusion, d\u2019une r\u00e9organisation, d\u2019un arrangement ou d\u2019une op\u00e9ration similaire,<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conformit\u00e9 aux conditions de conversion, d\u2019\u00e9change ou d\u2019exercice d\u2019un titre pr\u00e9c\u00e9demment \u00e9mis par un \u00e9metteur<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les transactions de pr\u00eat de titres, de mise en pension, de prise en pension ou de financement similaire<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les fonds de placement (achats r\u00e9gis par la partie\u00a09 ou rachats r\u00e9gis par la partie\u00a010 de la NC\u00a081-102 sur les fonds d\u2019investissement)<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les titres devant \u00eatre r\u00e9gl\u00e9s \u00e0 l\u2019\u00e9tranger<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les options, les contrats \u00e0 terme ou les transactions similaires sur produits d\u00e9riv\u00e9s, et<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les billets \u00e0 ordre n\u00e9gociables, le papier commercial ou les titres de cr\u00e9ance similaires \u00e0 court terme qui, habituellement, seraient r\u00e9gl\u00e9s au Canada le jour T.<\/p>\n<p>\u00c0 noter que les transactions sur ces titres se r\u00e8glent \u00e0 T+1 ou \u00e0 une date plus courte, selon les exigences contractuelles ou autres.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Les r\u00e8gles de l\u2019OCRI s\u2019appliquent-elles selon les exigences la NC\u00a024-101?<\/td>\n<td width=\"511\">Si un organisme d\u2019autor\u00e8glementation (OAR) dispose de r\u00e8gles traitant du m\u00eame sujet que les exigences de la NC\u00a024-101 (et les autorit\u00e9s de r\u00e9glementation ont approuv\u00e9 ces r\u00e8gles), les exigences de la NC\u00a024-101 ne s\u2019appliqueront pas, \u00e0 condition que le membre de l\u2019OAR se conforme aux r\u00e8gles de l\u2019OAR.<\/p>\n<p>Comme indiqu\u00e9 ci-apr\u00e8s, l\u2019OCRI dispose de r\u00e8gles pour l\u2019appariement des transactions de courtier \u00e0 courtier. La NC\u00a024-101 s\u2019appliquera aux transactions ATI, car l&#8217;OCRI ne dispose pas de r\u00e8gles ATI couvrant le m\u00eame sujet que les exigences de NC 24-101.<\/p>\n<p>L&#8217;OCRI a \u00e9galement des exigences en mati\u00e8re d&#8217;appariement ATI dans le cadre de la suppression de la confirmation \u00e9crite de la transaction, comme d\u00e9crit ci-dessous.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">10.\u00a0\u00a0\u00a0 L\u2019OCRI dispose-t-il de r\u00e8gles d\u2019appariement de transactions?<\/td>\n<td width=\"511\">Oui. Les r\u00e8gles de l\u2019OCRI (appel\u00e9es R\u00e8gles visant les courtiers en placement et r\u00e8gles partiellement consolid\u00e9es) comportent des exigences d\u2019appariement pour les op\u00e9rations non boursi\u00e8res. Il s\u2019agit d\u2019op\u00e9rations de courtier \u00e0 courtier (c.-\u00e0-d. entre deux courtiers) sur des valeurs admissibles \u00e0 la CDS qui n\u2019ont pas \u00e9t\u00e9 soumises au service de r\u00e8glement net continu (RNC) de la CDS.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a><\/p>\n<p>Pour la suppression des confirmations \u00e9crites de transactions, l&#8217;OCRI a \u00e9galement des exigences en mati\u00e8re d&#8217;appariement des transactions ATI, comme d\u00e9crit ci-dessous.<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">11.\u00a0\u00a0\u00a0 Qu\u2019est-ce que l\u2019exigence de d\u00e9claration de l\u2019appariement des transactions de l\u2019OCRI?<\/td>\n<td width=\"511\">Pr\u00e9sentement, l\u2019OCRI exige un rapport d\u2019exception (incluant un plan d\u2019action correctif) lorsque l\u2019appariement des transactions de courtier \u00e0 courtier est inf\u00e9rieur \u00e0 90\u00a0% pour un trimestre.<\/p>\n<p>Le pourcentage se calcule en divisant le total des transactions conformes d\u2019un trimestre (excluant les transactions \u00ab\u2009ne sait pas\u2009\u00bb) par le total des transactions non boursi\u00e8res d\u2019un courtier. Les transactions saisies (ou accept\u00e9es) \u00e0 18\u00a0h ou auparavant sont consid\u00e9r\u00e9es comme des transactions conformes.<\/p>\n<p>\u00c0 l\u2019instar de l\u2019abrogation propos\u00e9e des rapports trimestriels pr\u00e9vus par la NC\u00a024-101 pour les courtiers et les conseillers inscrits, l\u2019OCRI a <strong>propos\u00e9 d\u2019abroger<\/strong> les rapports d\u2019exception de courtier \u00e0 courtier pour les op\u00e9rations non boursi\u00e8res lorsque l\u2019appariement institutionnel d\u2019une transaction de courtier \u00e0 courtier est inf\u00e9rieure \u00e0 90\u00a0% pour un trimestre donn\u00e9; cependant, lorsque l\u2019appariement de courtier est inf\u00e9rieur \u00e0 90 % pour plus de deux trimestres cons\u00e9cutifs, l\u2019OCRI pourrait exercer une action disciplinaire<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a>.<\/p>\n<p>L\u2019OCRI poursuivra la surveillance des statistiques re\u00e7ues de la CDS pour ces op\u00e9rations.<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"207\">12.\u00a0\u00a0\u00a0 Comment l\u2019appariement influence-t-il les confirmations \u00e9crites selon les r\u00e8gles de l\u2019OCRI?<\/td>\n<td width=\"511\">Pr\u00e9sentement, un courtier n\u2019a pas besoin de confirmer par \u00e9crit les transactions de client disposant d\u2019un compte LCP\/RCP si\u00a0:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 pour les transactions ATI, le courtier a un pourcentage trimestriel de transactions conformes &gt;= 85\u00a0% pour au minimum deux des quatre derniers trimestres<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 pour les transactions de courtier \u00e0 courtier, le courtier a \u00e9t\u00e9 en conformit\u00e9 pour au minimum deux des quatre derniers trimestres, et pour tout rapport non conforme d\u00e9pos\u00e9 au cours de cette p\u00e9riode, le pourcentage trimestriel de transactions conformes n\u2019a pas \u00e9t\u00e9 inf\u00e9rieur \u00e0 85\u00a0%.<\/p>\n<p>Tel qu\u2019indiqu\u00e9 \u00e0 la question 11, l\u2019OCRI a propos\u00e9 d\u2019abroger l\u2019obligation de produire des rapports de non-conformit\u00e9 lorsque l\u2019appariement est inf\u00e9rieur \u00e0 90 % lors d\u2019un trimestre donn\u00e9. Les courtiers seront toujours tenus de maintenir un pourcentage trimestriel d\u2019op\u00e9rations conformes sup\u00e9rieur ou \u00e9gal \u00e0 85\u00a0% pendant au minimum deux des quatre derniers trimestres, tant pour les transactions ATI que pour les transactions de courtier \u00e0 courtier, aux fins de suppression des confirmations de transactions.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> \u00a0 Livraison contre paiement (LCP) ou r\u00e9ception contre paiement (RCP)<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u00a0 Pr\u00e9sentement \u00e0 midi \u00e0 T+1; le personnel des ACVM a recommand\u00e9 que les ACVM approuvent la modification \u00e0 3\u00a0h\u00a059 le jour T+1. <a href=\"https:\/\/lautorite.qc.ca\/fileadmin\/lautorite\/reglementation\/valeurs-mobilieres\/0-avis-acvm-staff\/2023\/2023aout10-24-319-avis-acvm-fr.pdf\">https:\/\/lautorite.qc.ca\/fileadmin\/lautorite\/reglementation\/valeurs-mobilieres\/0-avis-acvm-staff\/2023\/2023aout10-24-319-avis-acvm-fr.pdf<\/a>. Le secteur a convenu d\u2019une meilleure pratique de saisie de l\u2019appariement institutionnel des \u00e9changes (AIE) \u00e0 19\u00a0h\u00a030 le jour T.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> \u00a0 Conseillers inscrits, courtiers inscrits, investisseurs institutionnels et d\u00e9positaires.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> \u00a0 <a href=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Releve-normalise-de-lappariement-des-operations-26-september-2023.docx\">Relev\u00e9 normalis\u00e9 de l\u2019appariement des op\u00e9rations<\/a> (26 septembre 2023; en MS Word)<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> \u00a0 Bulletin sur les r\u00e8gles 23-0141 de l\u2019OCRI \u2013 <a href=\"https:\/\/www.ocri.ca\/salle-de-presse\/publications\/declaration-relative-lappariement-des-operations-norme-canadienne-24-101\">D\u00e9claration relative \u00e0 l\u2019appariement des op\u00e9rations \u2013 Norme canadienne 24-101<\/a> (avec formulaire <strong>PDF \u00e0 remplir en direct)<\/strong><\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> \u00a0 <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2023-06\/csa_20230615_24-930.pdf\">https:\/\/www.osc.ca\/sites\/default\/files\/2023-06\/csa_20230615_24-930.pdf<\/a>.<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> \u00a0 Paragraphe\u00a04751(1) des R\u00e8gles relatives aux courtiers en valeurs mobili\u00e8res et aux soci\u00e9t\u00e9s partiellement consolid\u00e9es. Les op\u00e9rations non boursi\u00e8res constituent \u00ab\u2009toute op\u00e9ration sur une valeur admissible \u00e0 la CDS (excluant les op\u00e9rations sur nouvelles \u00e9missions et les op\u00e9rations de mise en pension et de prise en pension) entre deux courtiers membres, non soumise au service de r\u00e8glement net continu de la CDS par un march\u00e9 ou un march\u00e9 \u00e9tranger reconnu\u2009\u00bb. Une op\u00e9ration non boursi\u00e8re comprend la partie courtier \u00e0 courtier d\u2019une transaction de jitney ex\u00e9cut\u00e9e entre deux courtiers membres non d\u00e9clar\u00e9e par un march\u00e9 ou un march\u00e9 \u00e9tranger acceptable.<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> \u00a0 <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2023-04\/newsro_20230420_notice.pdf\">https:\/\/www.osc.ca\/sites\/default\/files\/2023-04\/newsro_20230420_notice.pdf<\/a>.[\/vc_toggle][vc_toggle title=&#8221;24. What are the key implementation-related days for T+1 and why is the first T+1 trading day for Canada May 27, 2024 &#8211; a day earlier than in the U.S.?&#8221;]<strong>\u00a0<\/strong><strong>When will Canada and the U.S. move to a standard T+1 securities settlement practice?<\/strong><\/p>\n<p>Canada and the U.S. are transitioning to T+1 at the same time.\u00a0 Capital markets participants in both countries will make systems change to convert to a shortened standard securities settlement cycle \u2013 that is, from today\u2019s two days after a trade (or T+2) to the next day (or T+1) \u2013 on the May 25\/26, 2024 weekend.\u00a0 The last date securities will be traded on the current two-day standard in Canada and the U.S. will be Friday, May 24, 2024.\u00a0 The first day trading on a T+1 basis will be the next business day.\u00a0 In the U.S., the U.S. Securities and Exchange Commission (SEC) mandated Tuesday, May 28, 2024 (after the Memorial Day long weekend) as the transition date and so the first day to trade for next-day settlement. In Canada, securities markets are open on Monday, May 27, 2024, and so Monday will be the first day trades to be settled on a T+1\/next-day basis will be transacted in Canada.\u00a0 Trading volumes are historically lower when one market is open and the other is closed.<\/p>\n<p>Most capital markets participants in Canada and the U.S., and some global organizations, had urged the SEC to adopt the Labour Day 2024 weekend \u2013 a long weekend in both countries \u2013 for a simpler conversion.\u00a0 That said, firms in both markets have extensive experience adapting to situations when one market is closed and the other is open, long weekends can differ throughout the year when Canadian markets may be open and U.S. markets are closed (e.g., the mid-January Martin Luther King Jr. Day); there also are holidays where Canadian markets do not operate (e,g,, Canada Day) while American are open.<\/p>\n<p><strong>What does this mean for market participants?<\/strong><\/p>\n<p>Below is a table that shows market implications for market participants and investors.\u00a0 The last trades to settle on a T+2 basis in North America will be placed on Friday.\u00a0 Market participants on both sides of the border will transition and test systems conversion on the weekend. The first T+1 trading date and the double settlement date (the settlement of both the last T+2 and the first T+1 trades) will be Monday and Tuesday respectively in Canada and, in the U.S., they will be Tuesday and Wednesday.\u00a0 The two countries will again be on identical trading and settlement cycles from Thursday, May 30, 2024 on.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/T1-Implementation-Key-Dates.jpg\" width=\"900\" height=\"450\" \/><\/p>\n<p><strong>Why is Canada choosing to move to T+1 on a different day from the U.S.?<\/strong><\/p>\n<p>If Canada were to transition to T+1 on May 28, 2024, Canadian firms would have to implement T+1 system changes on the night of Monday, May 27, which will not allow enough time to validate changes have been made effectively before trading commences on Tuesday, May 28. \u00a0Also, Memorial Day is a holiday in the U.S., there will be minimal impact of being out of sync for one day. In fact, Memorial Day has historically been a light trading day in Canada and so Monday, May 27 will provide an additional day to confirm that all systems changes have been effective.<\/p>\n<p><strong>Were other options considered and if so what were they and why were they rejected?<\/strong><\/p>\n<p>One other alternative was discussed: that Canada treat May 27th as a non-trading, non-settlement day. \u00a0The following concerns of a number of market participants, and how the concerns were addressed, are as follows:<\/p>\n<ol>\n<li>A T+1 trading date in Canada but not the U.S. would require product-\/situation-specific timing issues to be addressed \u2013 while this is correct, the majority were common to all \u2018holiday-processing\u2019 dates and so resolvable based on past practice; new ones are being added to the CCMA\u2019s Operations Issue Log to be addressed, with \u2018workarounds\u2019 to be identified before implementation.<\/li>\n<li>For U.S. based firms trading and settling in Canada, additional U.S. staff will be required to work on a holiday \u2013 while a valid concern, this was felt to be a lesser issue than the risk of Canadian firms having to rush systems changes overnight on May 27, 2024.<\/li>\n<li>There would be additional work for the Canadian industry in the very unlikely case there is a need to back out systems changes for any reason \u2013 while this is a risk for any project, CCMA members will be working with American counterparts to ensure that, as in the 2017 move from T+3 to T+2, there is an appropriate \u2018go-\/no-go date multiple weeks before implementation to avoid the need for a last-minute backout.<\/li>\n<li>Make May 27, 2024 a non-trading\/non-settlement day in Canada would affect multiple industry stakeholders, including marketplaces (such as exchanges), the Bank of Canada and other regulators, the Canadian Depository for Securities Ltd., the Canadian Payments Association\/Payments Canada, CLS Bank, and possibly other organizations; market participants and investors would also have to know and prepare for a one-time change. There was also a thought that the Victoria Day holiday could be advanced was raised, but this also would require agreement from governments across the country, which would be a challenge\u00a0 to achieve.<\/li>\n<\/ol>\n<p>In summary, it is the Canadian industry member consensus that Monday, May 27 should be the first day of T+1 trading in 2024 because:<\/p>\n<ul>\n<li>Trying to have May 27, 2024 declared a non-trading\/non-settlement day would be resource-intensive and was highly unlikely to be successful<\/li>\n<li>Canadian market participants need certainty <em>now<\/em> so firms can proceed to make change decisions with confidence<\/li>\n<li>Having to implement T+1 overnight between Monday and Tuesday was considered much more risky<\/li>\n<li>The few challenges identified will be addressed by CCMA committees well in advance of implementation.<\/li>\n<\/ul>\n<p>[\/vc_toggle][vc_toggle title=&#8221;23. Why do Canadian capital markets propose 3:59 a.m. ET on T+1 rather than 9:00 p.m. on trade date for T+1 matching purposes? (added February 10, 2023)&#8221;]<em>(all times shown are Eastern Time)<\/em><\/p>\n<p>Canadian regulators have proposed amendments to National Instrument 24-101 <em>Institutional Trade Matching and Settlement<\/em> (NI 24-101) that would require 90% of institutional trades to be matched by 9:00 p.m. on trade date (T).<a href=\"#_edn1\" name=\"_ednref1\">[i]<\/a>\u00a0 The U.S. Securities and Exchange Commission (SEC) has proposed a rule requiring 100% of institutional trade matching (i.e., allocations, confirmations, and affirmations) to be completed by midnight on T,<a href=\"#_edn2\" name=\"_ednref2\">[ii]<\/a> with the U.S.\u2019s DTCC setting a 9:00 p.m. on T operational deadline for affirmations.<a href=\"#_edn3\" name=\"_ednref3\">[iii]<\/a>\u00a0 Canadian market participants believe that a 90% matching deadline just prior to 4 a.m. on T+1, still before the next business day settlements starts, is the best option, for several reasons, one being that the SEC\u2019s T+1 rule is not yet final.<\/p>\n<p>The SEC\u2019s proposed deadline for transitioning to T+1, published in February 2022, is Q1 2024 .\u00a0 The U.S. and Canadian industries responded to the SEC\u2019s request for comments last year, strongly recommending six months later \u2013 Q3 2024.\u00a0 If the SEC chooses Q1 2024 despite leading industry group requests for Labour Day weekend 2024, the transition effort \u2013 much more difficult than previous settlement cycle reductions \u2013 becomes significantly more challenging, making the Canadian industry\u2019s call for 3:59 a.m. on T+1 matching cut-off even more important.<\/p>\n<p><strong>Why has <\/strong><strong>the Canadian industry recommended <\/strong><strong>90% trade matching by 3:59 a.m. on T+1 for re<\/strong><strong>gulatory and operational purposes instead of a 9:00 p.m. on T deadline?<\/strong><\/p>\n<p>This deadline was proposed because it maximizes the flexibility for Canadian capital markets participants across the country, and benefits counterparties operating in non-Canadian time zones. Specifically:<\/p>\n<ol>\n<li>Custodians and buy-side firms will have more time with a 3:59 a.m. T+1 deadline to affirm trades before the day\u2019s netting settlement processes start at 4:00 a.m. on T+1.<\/li>\n<li>Sell-side firms will be best able to reduce their collateral requirements and complete settlement.<\/li>\n<li>Each firm can choose an earlier matching deadline before 3:59 a.m. on T+1 (such as 9:00 p.m. on T).<\/li>\n<\/ol>\n<p>There are two other important considerations:<\/p>\n<ol>\n<li>Canada\u2019s processing systems differ from those in the U.S. and, therefore, so do solutions.<\/li>\n<li>Canada and the U.S. have different regulatory approaches: the proposed U.S. rules apply directly to broker-dealers, custodians, and investment managers, while Canada\u2019s NI 24-101 trade-matching deadlines currently apply directly <em>only<\/em> to registered firms,<a href=\"#_edn4\" name=\"_ednref4\">[iv]<\/a> leaving other critical market players outside the regulatory framework.<\/li>\n<\/ol>\n<p><strong>A unified or at least harmonized approach to deadline regulation is more efficient.\u00a0 Don\u2019t different deadlines in Canada and the U.S. mean Canadian companies dealing in the U.S. must have a different process for each country?<\/strong><\/p>\n<p>Having different deadlines doesn\u2019t mean firms need two separate processes.\u00a0 Canadian firms can adopt the U.S. operational 9 p.m. matching deadline for both their Canadian and U.S. business if they determine this makes sense for their organizations.<\/p>\n<p>Operational rationalization and automation are important (as recommended in the CCMA\/industry\u2019s T+3 to T+2 <em>Post Mortem Report<\/em>).<a href=\"#_edn5\" name=\"_ednref5\">[v]<\/a>\u00a0 To facilitate greater automation, CDS is, among other things, replacing its CDSX clearing, settlement, and corporate actions systems as part of its post-trade modernization project (PTM).<a href=\"#_edn6\" name=\"_ednref6\">[vi]<\/a> \u00a0With (as of the start of February 2023) a minimum of 12 \u00bd months and a maximum of 19 months until T+1 implementation, achieving full automation (the best solution) is not possible in light of continued unknowns.\u00a0 The lack of a firm SEC transition date and details, in particular, has meant firms have not been able to devote the necessary attention to T+1 while they work on other regulatory projects with clear implementation dates.<\/p>\n<p><strong>Don\u2019t Canadian firms have to operate until 3:59 a.m. on T+1 if Canadian regulators set that time as a deadline for attaining 90% matching?<\/strong><\/p>\n<p>NI 24-101 doesn\u2019t prescribe a firm\u2019s hours of operations, or that it must stay open until 3:59 a.m. on T+1, if that is the Canadian deadline, as long as the firm meets the 90% affirmation threshold.<\/p>\n<p><strong>Trade-matching currently requires at least some interaction with internal and external counterparties, so wouldn\u2019t these parties need to be available to resolve issues through to 3:59 a.m. on T+1, demanding more staff to affirm all trades?<\/strong><\/p>\n<p>There is no requirement for more staff between DTCC\u2019s 9:00 p.m. on T operational deadline and what we believe should be Canada\u2019s 3:59 a.m. on T+1 operational and regulatory cut-off.\u00a0 Indeed, some buy-side firms, have advised their custodian that they have little interest in extending their current workdays.\u00a0 However, a 3:59 a.m. on T+1 deadline allows firms (buy-side, custodian, or sell-side) in European markets to affirm or correct trades at the start of their business day on T+1, and for those in Asian markets to have an extra 3.5 hours towards the end of their business day on T+1 to match or address errors.<\/p>\n<p><strong>Doesn\u2019t a later cut-off time for matching mean less time to fix mistakes?<\/strong><\/p>\n<p>To meet the 100%-matched-at-midnight U.S. regulatory deadline, DTCC has had to advance its system jobs schedule to 9:00 p.m. on T.\u00a0 In fact, a 3:59 a.m. T+1 deadline gives Canadian firms that need, or may need it, an additional seven hours (from 9:00 p.m. on T to 3:59 a.m. on T+1) to match trades or address issues.<\/p>\n<p><strong>Wouldn\u2019t it be more effective if one organization \u2013 CDS \u2013 compressed the timeline to achieve affirmation by 9:00 p.m. on T, which also sets us up better for T+0? <\/strong><\/p>\n<p>First, if the CSA\u2019s proposed 9:00 p.m. on T timeline were adopted, sell-side dealers would need to know all of their buy-side allocations by about 5:00 p.m. so buy-side firms and custodians could affirm trades by 7:30 p.m. for institutional trades to be received by 8:00 p.m. at CDS. \u00a0It is uncertain whether sell-side firms could meet the 5:00 p.m. deadline on T, and equally uncertain that market players, not subject to Canadian regulation, would make (or be able to make) this change. \u00a0It would also require a significant processing change in how trades are reported by marketplaces to CDS.<\/p>\n<p>Second, if CDS were to have to further change systems now, project risk would increase for both the T+1 <em>and<\/em> PTM projects as the timelines of the two already overlap.\u00a0 This could mean CDS would have to change both the CDSX (current) and PTM (future state) systems.\u00a0 It might require dealers, custodians, and service providers to also change internal systems, and to test on both the CDSX <em>and<\/em> PTM systems, increasing resource demands.<\/p>\n<p>Third, rushing to meet a 9:00 p.m. on T deadline on the premise that it might help achieve T+0 is not a persuasive reason because <em>when<\/em> T+0 might be mandated, and <em>how<\/em> T+0 might be interpreted, are as yet unclear.\u00a0 It would be more prudent to discuss further globally automated systems, especially because North America moving to T+1 (or less), when Europe and Asian counterparts remain largely on a T+2 standard settlement basis, has generated issues that have yet to be fully resolved, and any move to T+0 could create a completely different set of issues.<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><a href=\"#_ednref1\" name=\"_edn1\">[i]<\/a> \u00a0\u00a0\u00a0 <a href=\"https:\/\/www.osc.ca\/en\/securities-law\/instruments-rules-policies\/2\/24-101\/csa-notice-and-request-comment-proposed-amendments-national-instrument-24-101-institutional-trade\">https:\/\/www.osc.ca\/en\/securities-law\/instruments-rules-policies\/2\/24-101\/csa-notice-and-request-comment-proposed-amendments-national-instrument-24-101-institutional-trade<\/a>.<br \/>\n<a href=\"#_ednref2\" name=\"_edn2\">[ii]<\/a> \u00a0\u00a0\u00a0 <a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2022-02-24\/pdf\/2022-03143.pdf\">https:\/\/www.govinfo.gov\/content\/pkg\/FR-2022-02-24\/pdf\/2022-03143.pdf<\/a>.<br \/>\n<a href=\"#_ednref3\" name=\"_edn3\">[iii]<\/a> \u00a0\u00a0 <a href=\"https:\/\/www.dtcc.com\/-\/media\/Files\/PDFs\/T2\/T1-Functional-Changes.pdf\">https:\/\/www.dtcc.com\/-\/media\/Files\/PDFs\/T2\/T1-Functional-Changes.pdf<\/a>.<br \/>\n<a href=\"#_ednref4\" name=\"_edn4\">[iv]<\/a> \u00a0\u00a0 Dealers and advisers registered under securities legislation in Canada.<br \/>\n<a href=\"#_ednref5\" name=\"_edn5\">[v]<\/a> \u00a0\u00a0\u00a0 <a href=\"https:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/T2-Project-Post-Mortem-Report-April-19-2018.pdf\">https:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/T2-Project-Post-Mortem-Report-April-19-2018.pdf<\/a>.<br \/>\n<a href=\"#_ednref6\" name=\"_edn6\">[vi]<\/a> \u00a0\u00a0 <a href=\"https:\/\/www.cds.ca\/about\/post-trade-modernization\">https:\/\/www.cds.ca\/about\/post-trade-modernization<\/a>.[\/vc_toggle][vc_toggle title=&#8221;22. Are mutual funds currently settling on a T+2 basis going to move to the standard shorter settlement cycle (T+1) in 2024 with debt, equities, and other securities? (added January 31, 2023)&#8221;]While exchange-traded and closed-end funds will move to T+1, conventional mutual funds may or may not change to the shorter cycle.\u00a0 <a href=\"https:\/\/www.osc.ca\/sites\/default\/files\/2022-12\/csa_20221215_81-335_investment-fund-settlement-cycles.pdf\">CSA Staff Notice 81-335<\/a> \u2013 <em>Investment Funds Settlement Cycles<\/em>, published December 15, 2022, explains that:\u00a0 \u201cWe are not proposing to amend sections 9.4 and 10.4 of National Instrument 81-102 <em>Investment Funds<\/em> (NI 81-102) at this time to shorten the settlement cycle [from T+2 to T+1] for primary distributions and redemptions of mutual fund securities. If the standard settlement cycle for listed securities moves from two days to one day in Canada, we are of the view that, where practicable, mutual funds should settle primary distributions and redemptions of their securities on T+1 voluntarily. We think it is important, however, to enable each mutual fund to have flexibility to determine whether a T+1 settlement cycle can work for them. Requiring a T+1 settlement cycle in NI 81-102 would not allow for such flexibility.\u201d<\/p>\n<p>Fund managers with material holdings of securities traded in jurisdictions with longer settlement cycles (e.g., Europe and Asia) want the flexibility to remain at T+2 because the purchase or redemption of securities directly with a fund can cause liquidity issues when there is a settlement date \u2018mismatch,\u2019 especially as European and Asian markets close much earlier than North-American ones.<\/p>\n<p><strong>Note:\u00a0 <\/strong>55,028 (56%) of non-segregated-fund products, and a high percentage of segregated funds processed through Fundserv as at the end of 2022 settled on a T+2 basis.\u00a0 It is not known at this time what percentage of these funds will move from T+2 to T+1, nor is it known when this will be known.[\/vc_toggle][vc_toggle title=&#8221;21. How will investment fund dealers know which funds are moving to T+1 and which are staying at T+2 (and will any T+3-settling ones move to T+2?)? (added January 31, 2023)&#8221;]Fundserv is adopting the same approach used for the successful 2017 transition from T+2 to T+1.\u00a0 Fund companies will send fund set-up (FD) or product update (MD) files to notify Fundserv of those funds whose settlement cycle will be reducing to T+1 in advance of the implementation weekend (between Q1 and Q3 2024; specific date unknown).\u00a0 Dealers able to use these files can import them into their systems.\u00a0 For dealers unable to use FD or MD files, Fundserv will host a spreadsheet of funds that are transitioning to T+1 and these dealers will use the information from the spreadsheet to update their records.[\/vc_toggle][vc_toggle title=&#8221;20. If in the past, the standard settlement cycle for mutual funds and non-fund securities was the same, making it easier to switch between products; why may more conventional mutual funds continue to settle on a different basis? (added January 31, 2023)&#8221;]The settlement cycle of conventional mutual funds and other securities have been in sync for many years, however, they do not need to be on the same cycle, as evident in the U.S. (refer FAQ #16).\u00a0\u00a0 U.S. mutual fund orders have settled on a T+1 basis for a number of years while debt and equities have required a longer time frame.\u00a0 T+1 settlement of conventional mutual funds in the U.S. is possible because U.S. securities markets are much more liquid than Canada\u2019s.\u00a0 Also, the U.S. has rules (such as higher borrowing limits and permitted inter-fund borrowing) as well as practices (advance notice of major mutual fund orders) to help funds manage liquidity needs.][\/vc_toggle][vc_toggle title=&#8221;19. How will conventional mutual fund clients know which of their funds are moving to T+1 and which are staying at T+2 (will Fundserv\u2019s spreadsheet be available publicly?) (added January 31, 2023)&#8221;]<strong><em>Note:<\/em><\/strong>\u00a0 To be answered at a later date.[\/vc_toggle][vc_toggle title=&#8221;18: What difference, if any, will having some funds settling on T+2 and others settling on T+1 make to my mutual funds holdings? What difference will it mean for me if I also hold non-fund securities that may now settle on a different cycle? (added January 31, 2023)&#8221;]<strong>Note:<\/strong>\u00a0 To be answered at a later date.[\/vc_toggle][vc_toggle title=&#8221;17. When will CDS release a T+1 white paper, impact assessment, roadmap, and business requirements document? (added September 7, 2022)&#8221;]There will not be a CDS white paper, impact assessment, or roadmap because Canadian market players have agreed, through the CCMA, that the Canadian capital markets industry must move to T+1 for competitive reasons, or face the negative consequences of arbitrage, additional cost, and greater risk that a longer standard settlement cycle than the U.S. would pose.<\/p>\n<p>To move to a standard settlement cycle of T+1 on the same date as the U.S., CDS worked with the CCMA to arrive at a <a href=\"https:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Recommended-T1-CDS-Scheduler-Adjustments-July-29-2022.pdf\">revised CDS Schedule<\/a> (approved by the CCMA T+1 Steering Committee on June 28, 2022) and CDS and exchanges have since committed to:<\/p>\n<ul>\n<li>Receiving batch files on an hourly basis, starting at 11:00 a.m. ET (CDS is meeting quarterly with the TMX and other exchanges\/marketplaces in this regard)<\/li>\n<li>Generating\/delivering exchange-trade messages and files back to participants and their service bureaus on an hourly basis intraday<\/li>\n<li>Receiving reconciliation files by 19:30 on T.<\/li>\n<\/ul>\n<p>CDS will issue a requirements document once all material CDS-related issues in the CCMA Operations Working Group (OWG) Issue Log have been addressed.\u00a0 For this to happen as rapidly as possible, industry participants must drill down now into trade, allocation, confirmation, and settlement systems and processes to identify, discuss, and address at OWG meetings what prevents trades from being confirmed by the end of trade date. \u00a0The CCMA would like to see the related issue logs closed in Q3\/Q4 2022.\u00a0 CDS also expects to issue a requirements document and test plan in Q4 2022.[\/vc_toggle][vc_toggle title=&#8221;16. `{`replaced &#8211; See Q 22`}` Will the settlement cycle for purchases and redemptions of mutual fund units\/shares shorten from T+2 to T+1 in 2024? (added September 7, 2022)&#8221;]Canadian and U.S. mutual funds have been on different standard settlement cycles for purchases and redemptions of their units\/shares for a while, with apparently most U.S. funds settling purchases and redemptions on a T+1 cycle for many years.\u00a0 Most Canadian funds, on the other hand, have settled for decades on the same schedule (currently T+2) as Canadian debt, equity, and exchange-traded products, against which mutual fund investments may compete. The difference between Canadian and U.S. fund settlement cycles has not been, and is not expected to be an issue, because unlike in the case of secondary market trading of debt, equity and exchange-traded products, and particularly securities interlisted on Canadian and U.S. exchanges, Canadian and American mutual funds do not compete. \u00a0Essentially, Canadian mutual funds are not an investment option in the U.S., nor are U.S. mutual funds an option in Canada. One key issue for the Canadian mutual fund industry in the case of shortening the purchase and redemption settlement cycle to T+1 is that many foreign jurisdictions other than the U.S. are not currently proposing to also move to a T+1 settlement cycle. The settlement cycles of certain types of portfolio securities may be problematic for Canadian funds that hold significant amounts of the types of securities\/instruments that will remain at a T+2 or greater settlement cycle (e.g., T+3 in some foreign jurisdictions). With U.S. mutual fund market participants being so much larger than that in Canada, Canadian mutual fund industry representatives have been told that these timing differences are not as problematic for them.[\/vc_toggle][vc_toggle title=&#8221;15. Will Canada issue a T+1 Playbook like the U.S.? (added September 7, 2022)&#8221;]<strong>\u00a0<\/strong>The CCMA is not issuing an equivalent to the U.S.\u2019s <em>T+1 Playbook<\/em> for several reasons:<\/p>\n<ul>\n<li>Such a tool is needed in the U.S. because of the proportionally larger volume of capital markets participants, much broader range of service providers and vendors, and greater complexity of some systems and markets, as well as the lead that the U.S. is taking in the move to T+1.<\/li>\n<li>It is not required in Canada (nor was a Canadian version of the U.S. <em>T+2 Playbook<\/em> published for the T+2 move) because the Canadian marketplace is quite similar in many ways to the U.S. capital markets and, due to Canada\u2019s comparatively smaller capital markets size, it cannot reasonably go in a direction that differs materially from that of the U.S. The well-designed U.S. <em>T+1 Playbook<\/em> is therefore useful not just for American industry participants but also for Canadian ones.<\/li>\n<li>Finally, Canada\u2019s capital markets are more concentrated, with only a handful of large infrastructure providers, custodians, service bureaus, and vendors \u2013 many of which also operate in the States \u2013 linking all parties in the end-to-end processing chain, and significantly reducing delays and simplifying co-ordination.<\/li>\n<\/ul>\n<p>We encourage CCMA members to review the U.S. <em>T+1 Playbook<\/em> and use its workbooks.\u00a0 The CCMA will, as for T+2, provide complementary support where needed:\u00a0 a T+1 schedule that dovetails with the U.S.\u2019s, Canadian checklists and Canada-specific frequently-asked questions (FAQs), as well as other tools.[\/vc_toggle][vc_toggle title=&#8221;14. Will there be changes in the calculation of the Canadian ex-date for corporate action events in a T+1 environment? (added September 7, 2022)&#8221;]Corporate actions relative to exchange-traded securities trade with or without any associated income distribution depending on the corporate action\u2019s record date. The security trades without a dividend on the ex date \u2013 the trading day before the date of record in today\u2019s T+2 environment.\u00a0 In a T+1 environment, the ex and record dates will be the same \u2013 T+1 \u2013 in the U.S. and Canada.<\/p>\n<p>In some cases, an exchange may set a later ex-date, for example, due to challenges with stock or large cash dividends, and the securities will trade with a \u2018due bill.\u2019 \u00a0The U.S. has indicated that for trades with due bills, the ex date will be the same as the due bill redemption date, and Canada will adopt the same practice at the time of T+1 transition.<\/p>\n<p>Also impacted are \u2018protect\u2019 or letter-of-guarantee periods for voluntary corporate action event (e.g., rights subscription or tender offer) expiries, which usually align with the standard settlement structure (currently T+2) \u2013 investors can purchase securities even on the offer\u2019s expiration date, with the protect feature \u201ccovered\u201d once the securities settle in two days\u2019 time. \u00a0In a T+1 settlement cycle, the cover\/protect or letter-of-guarantee period will be the expiration date plus one (1) trading day.<\/p>\n<p>There will be a CDS external procedure change requiring regulatory non-disapproval, but no system or rule changes required for CDS.<\/p>\n<p>Finally, to reduce risk, the industry is requesting marketplaces to recommend that issuers try to avoid setting corporate-action-related dates during the days chosen to both start trading on a T+1 basis and the following day (T+1), which is a \u2018double settlement\u2019 date (trades the previous day due to be settled on T+1, as well as those from two business days prior settling on the \u2018old\u2019 T+2 basis).[\/vc_toggle][vc_toggle title=&#8221;13. Will Canada\u2019s buy-in process (the requirement to acquire securities to fulfill an investor\u2019s purchase order if securities are not on hand or returned from securities loans) change with the move to T+1? (added September 7, 2022)&#8221;]<\/p>\n<p>CDS will align Canadian buy-in processes with the changes being implemented in the U.S. as follows:<\/p>\n<table width=\"630\">\n<tbody>\n<tr>\n<td width=\"150\"><strong>Buy-in process<\/strong><\/td>\n<td width=\"228\"><strong>Current:\u00a0 <\/strong><\/p>\n<p>Buy-in intent can be submitted on T+2 and the intent will be executed on:<\/td>\n<td width=\"252\"><strong>Future buy-in process:<\/strong><\/p>\n<p>Buy-in intent can be submitted on T+1 and the intent will be executed on:<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From prior to 4:00-4:45 PM EST<\/td>\n<td width=\"228\">Notification Date plus 2 (N+2)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 1 (N+1)<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From 4:45 PM \u20137:30 PM EST<\/td>\n<td width=\"228\">Notification Date plus 3 (N+3)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 2 (N+2)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_toggle][vc_toggle title=&#8221;12. Will Canada be ready for T+1 on the same schedule as the U.S.? (added September 7, 2022)&#8221;]Yes. First, Canadian market participants have effectively managed the reduction in the North-American settlement cycle in the past.\u00a0 Second, at the two-years-to-T+2 implementation mark, the CCMA had only just hired T+2 project resources, and was able to successfully migrate to T+2 on September 5, 2017 with the U.S., whereas the CCMA started working on the T+1 project three years before scheduled T+1 transition.\u00a0 At the two-year mark for T+1 \u2013 although more challenging than the move to T+2 \u2013 the CCMA and its members already have agreed on a T+1 Asset List, achieved consensus on CDS Scheduler changes, and made material progress on operations and legal\/regulatory issue logs of issues.\u00a0 As well, many of those who worked on the T+2 project are again working on T+1, reducing the learning curve.\u00a0 Lastly, without any systems or operational changes at all, 90% of trades already could settle without difficulty at 4:00 p.m. ET.\u00a0 Whatever the 2024 migration date the U.S. Securities and Exchange Commission (SEC) chooses for T+1, Canadian capital markets will be ready to test and transition to the shorter cycle with American counterparts.[\/vc_toggle][vc_toggle title=&#8221;11. What is the process and timing currently for mutual fund pricing error corrections? (added May 23, 2022)&#8221;]If there is a pricing error that impacts trades that have already been reported in the Contract File (FS), fund companies have several options. They can issue new price files, reverse and reprocess the transactions with the correct price, or compensate accounts or deduct units.[\/vc_toggle][vc_toggle title=&#8221;10. Are there consequences or follow-up initiated if standard Fundserv timelines are not met? (added May 23, 2022)&#8221;]Late prices may delay the start of the overnight batch run. if it is extremely late, it may cause a fund company to miss the 6 a.m. ET Contract File (FS) cut-off. This could mean penalties and negative feedback from dealers that won&#8217;t receive the file in time to match pending orders. If this occurs, advisors will not see the trades contracted in investor accounts.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;9. Are mutual fund prices created more than once a day and, if, so under what conditions? (added May 23, 2022)&#8221;]No, prices are created only once a day.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;8. When do fund companies strike mutual fund prices (is there a deadline)? (added May 23, 2022)&#8221;]Prices are normally struck by 5:30 pm, but it depends on the complexity of the portfolio. There isn&#8217;t a formal deadline, but they must be calculated before the Fundserv nightly batch run starts.[\/vc_toggle][vc_toggle title=&#8221;7. The U.S. securities regulator (Securities and Exchange Commission or SEC) issued a formal proposal on February 10, 2022, which, if adopted, would require moving to a standard T+1 settlement cycle by March 31, 2024, although the DTCC\/SIFMA\/ICI white paper said the first half of 2024. What is the Canadian marketplace going to do? (added February 17, 2022)&#8221;]Canadian market participants have committed to moving to T+1 on the same day as U.S. counterparts.\u00a0 Whatever the final date chosen, Canadian firms should target completing system and operational changes, and be well along in industrywide testing, by December 31, 2023.\u00a0 We are continuing to work with industry members and our American colleagues to confirm an integrated timeline, which will be posted once approved.[\/vc_toggle][vc_toggle title=&#8221;6. What is T+1? (added December 1, 2021)&#8221;]T+1 (and T+0, T+2, and T+3) refers to the number of days (as in a one-day gap) between trade execution (or T) and the related trade settlement (defined as the exchange of the buyer\u2019s payment for the trade to the seller in conjunction with the transfer of these securities from the seller to the buyer.[\/vc_toggle][vc_toggle title=&#8221;5. How can I know if my firm is involved or how can I get involved myself? (added December 1, 2021)&#8221;]Please visit\u00a0<a href=\"http:\/\/ccma-acmc.ca\/\">www.ccma-acmc.ca<\/a>\u00a0or e-mail Keith Evans at kevans@ccma-acmc.ca.[\/vc_toggle][vc_toggle title=&#8221;4. Do the settlement cycles in the U.S. and Canada need to remain harmonized and, if so, why? (added December 1, 2021)&#8221;]They don&#8217;t need to be, but should be harmonized to reduce risk, complexity and ultimately cost. A CCMA_commissioned <a href=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Charles-River-Report-Nov10.pdf\">study<\/a> was completed in 1999 by Charles River Associates that indicated the Canadian capital markets should change the settlement cycle at the same time as the U.S. \u2013 neither before, nor after. About 40% of trades on Canadian stock exchanges are inter-listed securities (that is, a single security is listed on both Canadian and American exchanges) and Canada-U.S. cross-border transactions make up roughly 25% of the millions of trades processed annually through CDS. Different settlement dates would cause confusion for investors and increase the risk of errors with the associated cost of manual corrections.[\/vc_toggle][vc_toggle title=&#8221;3. Why do securities have different settlement cycles, and why aren\u2019t they the same day just as I can withdraw money from my account and it is processed the same day? (added December 1, 2021)&#8221;]The automation of both cash and securities markets advanced considerably during the 1980s, 1990s, and first decade of this century. However, the transfer of cash still remains much more straightforward than is the case with securities. A cash transfer requires agreement on and transfer of usually relatively small amounts on a particular date. In the case of securities, there are many more details to agree upon. For example, investment managers have 18 mandatory data elements per transaction to send to the broker-dealer and custodian, if allocating at the individual client level \u2014 and the amounts at risk can be considerably greater. Also, some investments involve on and offshore structures, where the offshore part will take longer to transact or involve illiquid securities where it may take extra days to sell an asset at a reasonable price.[\/vc_toggle][vc_toggle title=&#8221;2. What securities will be affected by the shortened cycle? (added December 1, 2021)&#8221;]In general, the main securities that are expected to be impacted are: all stocks or equities, all corporate bonds, and long-term government bonds with a remaining term to maturity of more than three years (TBC), as well as investment funds, including conventional mutual funds, exchange-traded funds or ETFs and hedge funds, as well as segregated funds and principle-protected notes.[\/vc_toggle][vc_toggle title=&#8221;1. How could this affect me as an investor? (added December 1, 2021)&#8221;]Many investors might experience no change at all, if they buy and sell using securities and cash they already have in their accounts. If they hold securities as certificates in physical form, however, investors have to deliver them to their dealer beforehand. If they are not selling securities already in their accounts or don\u2019t have enough cash, they will have to deposit cash to cover the transaction. Speak to your dealer or custodian to learn more details about the effect of any changes.[\/vc_toggle][\/vc_column][\/vc_row][vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column][vc_toggle title=&#8221;17. When will CDS release a T+1 white paper, impact assessment, roadmap, and business requirements document? (added September 7, 2022)&#8221;]There will not be a CDS white paper, impact assessment, or roadmap because Canadian market players have agreed, through the CCMA, that the Canadian capital markets industry must move to T+1 for competitive reasons, or face the negative consequences of arbitrage, additional cost, and greater risk that a longer standard settlement cycle than the U.S. would pose.<\/p>\n<p>To move to a standard settlement cycle of T+1 on the same date as the U.S., CDS worked with the CCMA to arrive at a <a href=\"https:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Recommended-T1-CDS-Scheduler-Adjustments-July-29-2022.pdf\">revised CDS Schedule<\/a> (approved by the CCMA T+1 Steering Committee on June 28, 2022) and CDS and exchanges have since committed to:<\/p>\n<ul>\n<li>Receiving batch files on an hourly basis, starting at 11:00 a.m. ET (CDS is meeting quarterly with the TMX and other exchanges\/marketplaces in this regard)<\/li>\n<li>Generating\/delivering exchange-trade messages and files back to participants and their service bureaus on an hourly basis intraday<\/li>\n<li>Receiving reconciliation files by 19:30 on T.<\/li>\n<\/ul>\n<p>CDS will issue a requirements document once all material CDS-related issues in the CCMA Operations Working Group (OWG) Issue Log have been addressed.\u00a0 For this to happen as rapidly as possible, industry participants must drill down now into trade, allocation, confirmation, and settlement systems and processes to identify, discuss, and address at OWG meetings what prevents trades from being confirmed by the end of trade date. \u00a0The CCMA would like to see the related issue logs closed in Q3\/Q4 2022.\u00a0 CDS also expects to issue a requirements document and test plan in Q4 2022.[\/vc_toggle][vc_toggle title=&#8221;16. Will the settlement cycle for purchases and redemptions of mutual fund units\/shares shorten from T+2 to T+1 in 2024? (added September 7, 2022)&#8221;]Canadian and U.S. mutual funds have been on different standard settlement cycles for purchases and redemptions of their units\/shares for a while, with apparently most U.S. funds settling purchases and redemptions on a T+1 cycle for many years.\u00a0 Most Canadian funds, on the other hand, have settled for decades on the same schedule (currently T+2) as Canadian debt, equity, and exchange-traded products, against which mutual fund investments may compete. The difference between Canadian and U.S. fund settlement cycles has not been, and is not expected to be an issue, because unlike in the case of secondary market trading of debt, equity and exchange-traded products, and particularly securities interlisted on Canadian and U.S. exchanges, Canadian and American mutual funds do not compete. \u00a0Essentially, Canadian mutual funds are not an investment option in the U.S., nor are U.S. mutual funds an option in Canada. One key issue for the Canadian mutual fund industry in the case of shortening the purchase and redemption settlement cycle to T+1 is that many foreign jurisdictions other than the U.S. are not currently proposing to also move to a T+1 settlement cycle. The settlement cycles of certain types of portfolio securities may be problematic for Canadian funds that hold significant amounts of the types of securities\/instruments that will remain at a T+2 or greater settlement cycle (e.g., T+3 in some foreign jurisdictions). With U.S. mutual fund market participants being so much larger than that in Canada, Canadian mutual fund industry representatives have been told that these timing differences are not as problematic for them.[\/vc_toggle][vc_toggle title=&#8221;15. Will Canada issue a T+1 Playbook like the U.S.? (added September 7, 2022)&#8221;]<strong>\u00a0<\/strong>The CCMA is not issuing an equivalent to the U.S.\u2019s <em>T+1 Playbook<\/em> for several reasons:<\/p>\n<ul>\n<li>Such a tool is needed in the U.S. because of the proportionally larger volume of capital markets participants, much broader range of service providers and vendors, and greater complexity of some systems and markets, as well as the lead that the U.S. is taking in the move to T+1.<\/li>\n<li>It is not required in Canada (nor was a Canadian version of the U.S. <em>T+2 Playbook<\/em> published for the T+2 move) because the Canadian marketplace is quite similar in many ways to the U.S. capital markets and, due to Canada\u2019s comparatively smaller capital markets size, it cannot reasonably go in a direction that differs materially from that of the U.S. The well-designed U.S. <em>T+1 Playbook<\/em> is therefore useful not just for American industry participants but also for Canadian ones.<\/li>\n<li>Finally, Canada\u2019s capital markets are more concentrated, with only a handful of large infrastructure providers, custodians, service bureaus, and vendors \u2013 many of which also operate in the States \u2013 linking all parties in the end-to-end processing chain, and significantly reducing delays and simplifying co-ordination.<\/li>\n<\/ul>\n<p>We encourage CCMA members to review the U.S. <em>T+1 Playbook<\/em> and use its workbooks.\u00a0 The CCMA will, as for T+2, provide complementary support where needed:\u00a0 a T+1 schedule that dovetails with the U.S.\u2019s, Canadian checklists and Canada-specific frequently-asked questions (FAQs), as well as other tools.[\/vc_toggle][vc_toggle title=&#8221;14. Will there be changes in the calculation of the Canadian ex-date for corporate action events in a T+1 environment? (added September 7, 2022)&#8221;]Corporate actions relative to exchange-traded securities trade with or without any associated income distribution depending on the corporate action\u2019s record date. The security trades without a dividend on the ex date \u2013 the trading day before the date of record in today\u2019s T+2 environment.\u00a0 In a T+1 environment, the ex and record dates will be the same \u2013 T+1 \u2013 in the U.S. and Canada.<\/p>\n<p>In some cases, an exchange may set a later ex-date, for example, due to challenges with stock or large cash dividends, and the securities will trade with a \u2018due bill.\u2019 \u00a0The U.S. has indicated that for trades with due bills, the ex date will be the same as the due bill redemption date, and Canada will adopt the same practice at the time of T+1 transition.<\/p>\n<p>Also impacted are \u2018protect\u2019 or letter-of-guarantee periods for voluntary corporate action event (e.g., rights subscription or tender offer) expiries, which usually align with the standard settlement structure (currently T+2) \u2013 investors can purchase securities even on the offer\u2019s expiration date, with the protect feature \u201ccovered\u201d once the securities settle in two days\u2019 time. \u00a0In a T+1 settlement cycle, the cover\/protect or letter-of-guarantee period will be the expiration date plus one (1) trading day.<\/p>\n<p>There will be a CDS external procedure change requiring regulatory non-disapproval, but no system or rule changes required for CDS.<\/p>\n<p>Finally, to reduce risk, the industry is requesting marketplaces to recommend that issuers try to avoid setting corporate-action-related dates during the days chosen to both start trading on a T+1 basis and the following day (T+1), which is a \u2018double settlement\u2019 date (trades the previous day due to be settled on T+1, as well as those from two business days prior settling on the \u2018old\u2019 T+2 basis).[\/vc_toggle][vc_toggle title=&#8221;13. Will Canada\u2019s buy-in process (the requirement to acquire securities to fulfill an investor\u2019s purchase order if securities are not on hand or returned from securities loans) change with the move to T+1? (added September 7, 2022)&#8221;]<\/p>\n<p>CDS will align Canadian buy-in processes with the changes being implemented in the U.S. as follows:<\/p>\n<table width=\"630\">\n<tbody>\n<tr>\n<td width=\"150\"><strong>Buy-in process<\/strong><\/td>\n<td width=\"228\"><strong>Current:\u00a0 <\/strong><\/p>\n<p>Buy-in intent can be submitted on T+2 and the intent will be executed on:<\/td>\n<td width=\"252\"><strong>Future buy-in process:<\/strong><\/p>\n<p>Buy-in intent can be submitted on T+1 and the intent will be executed on:<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From prior to 4:00-4:45 PM EST<\/td>\n<td width=\"228\">Notification Date plus 2 (N+2)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 1 (N+1)<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From 4:45 PM \u20137:30 PM EST<\/td>\n<td width=\"228\">Notification Date plus 3 (N+3)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 2 (N+2)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_toggle][vc_toggle title=&#8221;12. Will Canada be ready for T+1 on the same schedule as the U.S.? (added September 7, 2022)&#8221;]Yes. First, Canadian market participants have effectively managed the reduction in the North-American settlement cycle in the past.\u00a0 Second, at the two-years-to-T+2 implementation mark, the CCMA had only just hired T+2 project resources, and was able to successfully migrate to T+2 on September 5, 2017 with the U.S., whereas the CCMA started working on the T+1 project three years before scheduled T+1 transition.\u00a0 At the two-year mark for T+1 \u2013 although more challenging than the move to T+2 \u2013 the CCMA and its members already have agreed on a T+1 Asset List, achieved consensus on CDS Scheduler changes, and made material progress on operations and legal\/regulatory issue logs of issues.\u00a0 As well, many of those who worked on the T+2 project are again working on T+1, reducing the learning curve.\u00a0 Lastly, without any systems or operational changes at all, 90% of trades already could settle without difficulty at 4:00 p.m. ET.\u00a0 Whatever the 2024 migration date the U.S. Securities and Exchange Commission (SEC) chooses for T+1, Canadian capital markets will be ready to test and transition to the shorter cycle with American counterparts.[\/vc_toggle][vc_toggle title=&#8221;11. What is the process and timing currently for mutual fund pricing error corrections? (added May 23, 2022)&#8221;]If there is a pricing error that impacts trades that have already been reported in the Contract File (FS), fund companies have several options. They can issue new price files, reverse and reprocess the transactions with the correct price, or compensate accounts or deduct units.[\/vc_toggle][vc_toggle title=&#8221;10. Are there consequences or follow-up initiated if standard Fundserv timelines are not met? (added May 23, 2022)&#8221;]Late prices may delay the start of the overnight batch run. if it is extremely late, it may cause a fund company to miss the 6 a.m. ET Contract File (FS) cut-off. This could mean penalties and negative feedback from dealers that won&#8217;t receive the file in time to match pending orders. If this occurs, advisors will not see the trades contracted in investor accounts.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;9. Are mutual fund prices created more than once a day and, if, so under what conditions? (added May 23, 2022)&#8221;]No, prices are created only once a day.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;8. When do fund companies strike mutual fund prices (is there a deadline)? (added May 23, 2022)&#8221;]Prices are normally struck by 5:30 pm, but it depends on the complexity of the portfolio. There isn&#8217;t a formal deadline, but they must be calculated before the Fundserv nightly batch run starts.[\/vc_toggle][vc_toggle title=&#8221;7. The U.S. securities regulator (Securities and Exchange Commission or SEC) issued a formal proposal on February 10, 2022, which, if adopted, would require moving to a standard T+1 settlement cycle by March 31, 2024, although the DTCC\/SIFMA\/ICI white paper said the first half of 2024. What is the Canadian marketplace going to do? (added February 17, 2022)&#8221;]Canadian market participants have committed to moving to T+1 on the same day as U.S. counterparts.\u00a0 Whatever the final date chosen, Canadian firms should target completing system and operational changes, and be well along in industrywide testing, by December 31, 2023.\u00a0 We are continuing to work with industry members and our American colleagues to confirm an integrated timeline, which will be posted once approved.[\/vc_toggle][vc_toggle title=&#8221;6. What is T+1? (added December 1, 2021)&#8221;]T+1 (and T+0, T+2, and T+3) refers to the number of days (as in a one-day gap) between trade execution (or T) and the related trade settlement (defined as the exchange of the buyer\u2019s payment for the trade to the seller in conjunction with the transfer of these securities from the seller to the buyer.[\/vc_toggle][vc_toggle title=&#8221;5. How can I know if my firm is involved or how can I get involved myself? (added December 1, 2021)&#8221;]Please visit\u00a0<a href=\"http:\/\/ccma-acmc.ca\/\">www.ccma-acmc.ca<\/a>\u00a0or e-mail Keith Evans at kevans@ccma-acmc.ca.[\/vc_toggle][vc_toggle title=&#8221;4. Do the settlement cycles in the U.S. and Canada need to remain harmonized and, if so, why? (added December 1, 2021)&#8221;]They don&#8217;t need to be, but should be harmonized to reduce risk, complexity and ultimately cost. A CCMA_commissioned <a href=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Charles-River-Report-Nov10.pdf\">study<\/a> was completed in 1999 by Charles River Associates that indicated the Canadian capital markets should change the settlement cycle at the same time as the U.S. \u2013 neither before, nor after. About 40% of trades on Canadian stock exchanges are inter-listed securities (that is, a single security is listed on both Canadian and American exchanges) and Canada-U.S. cross-border transactions make up roughly 25% of the millions of trades processed annually through CDS. Different settlement dates would cause confusion for investors and increase the risk of errors with the associated cost of manual corrections.[\/vc_toggle][vc_toggle title=&#8221;3. Why do securities have different settlement cycles, and why aren\u2019t they the same day just as I can withdraw money from my account and it is processed the same day? (added December 1, 2021)&#8221;]The automation of both cash and securities markets advanced considerably during the 1980s, 1990s, and first decade of this century. However, the transfer of cash still remains much more straightforward than is the case with securities. A cash transfer requires agreement on and transfer of usually relatively small amounts on a particular date. In the case of securities, there are many more details to agree upon. For example, investment managers have 18 mandatory data elements per transaction to send to the broker-dealer and custodian, if allocating at the individual client level \u2014 and the amounts at risk can be considerably greater. Also, some investments involve on and offshore structures, where the offshore part will take longer to transact or involve illiquid securities where it may take extra days to sell an asset at a reasonable price.[\/vc_toggle][vc_toggle title=&#8221;2. What securities will be affected by the shortened cycle? (added December 1, 2021)&#8221;]In general, the main securities that are expected to be impacted are: all stocks or equities, all corporate bonds, and long-term government bonds with a remaining term to maturity of more than three years (TBC), as well as investment funds, including conventional mutual funds, exchange-traded funds or ETFs and hedge funds, as well as segregated funds and principle-protected notes.[\/vc_toggle][vc_toggle title=&#8221;1. How could this affect me as an investor? (added December 1, 2021)&#8221;]Many investors might experience no change at all, if they buy and sell using securities and cash they already have in their accounts. If they hold securities as certificates in physical form, however, investors have to deliver them to their dealer beforehand. If they are not selling securities already in their accounts or don\u2019t have enough cash, they will have to deposit cash to cover the transaction. Speak to your dealer or custodian to learn more details about the effect of any changes.[\/vc_toggle][\/vc_column][\/vc_row][vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column][vc_toggle title=&#8221;17. When will CDS release a T+1 white paper, impact assessment, roadmap, and business requirements document? (added September 7, 2022)&#8221;]There will not be a CDS white paper, impact assessment, or roadmap because Canadian market players have agreed, through the CCMA, that the Canadian capital markets industry must move to T+1 for competitive reasons, or face the negative consequences of arbitrage, additional cost, and greater risk that a longer standard settlement cycle than the U.S. would pose.<\/p>\n<p>To move to a standard settlement cycle of T+1 on the same date as the U.S., CDS worked with the CCMA to arrive at a <a href=\"https:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Recommended-T1-CDS-Scheduler-Adjustments-July-29-2022.pdf\">revised CDS Schedule<\/a> (approved by the CCMA T+1 Steering Committee on June 28, 2022) and CDS and exchanges have since committed to:<\/p>\n<ul>\n<li>Receiving batch files on an hourly basis, starting at 11:00 a.m. ET (CDS is meeting quarterly with the TMX and other exchanges\/marketplaces in this regard)<\/li>\n<li>Generating\/delivering exchange-trade messages and files back to participants and their service bureaus on an hourly basis intraday<\/li>\n<li>Receiving reconciliation files by 19:30 on T.<\/li>\n<\/ul>\n<p>CDS will issue a requirements document once all material CDS-related issues in the CCMA Operations Working Group (OWG) Issue Log have been addressed.\u00a0 For this to happen as rapidly as possible, industry participants must drill down now into trade, allocation, confirmation, and settlement systems and processes to identify, discuss, and address at OWG meetings what prevents trades from being confirmed by the end of trade date. \u00a0The CCMA would like to see the related issue logs closed in Q3\/Q4 2022.\u00a0 CDS also expects to issue a requirements document and test plan in Q4 2022.[\/vc_toggle][vc_toggle title=&#8221;16. Will the settlement cycle for purchases and redemptions of mutual fund units\/shares shorten from T+2 to T+1 in 2024? (added September 7, 2022)&#8221;]Canadian and U.S. mutual funds have been on different standard settlement cycles for purchases and redemptions of their units\/shares for a while, with apparently most U.S. funds settling purchases and redemptions on a T+1 cycle for many years.\u00a0 Most Canadian funds, on the other hand, have settled for decades on the same schedule (currently T+2) as Canadian debt, equity, and exchange-traded products, against which mutual fund investments may compete. The difference between Canadian and U.S. fund settlement cycles has not been, and is not expected to be an issue, because unlike in the case of secondary market trading of debt, equity and exchange-traded products, and particularly securities interlisted on Canadian and U.S. exchanges, Canadian and American mutual funds do not compete. \u00a0Essentially, Canadian mutual funds are not an investment option in the U.S., nor are U.S. mutual funds an option in Canada. One key issue for the Canadian mutual fund industry in the case of shortening the purchase and redemption settlement cycle to T+1 is that many foreign jurisdictions other than the U.S. are not currently proposing to also move to a T+1 settlement cycle. The settlement cycles of certain types of portfolio securities may be problematic for Canadian funds that hold significant amounts of the types of securities\/instruments that will remain at a T+2 or greater settlement cycle (e.g., T+3 in some foreign jurisdictions). With U.S. mutual fund market participants being so much larger than that in Canada, Canadian mutual fund industry representatives have been told that these timing differences are not as problematic for them.[\/vc_toggle][vc_toggle title=&#8221;15. Will Canada issue a T+1 Playbook like the U.S.? (added September 7, 2022)&#8221;]<strong>\u00a0<\/strong>The CCMA is not issuing an equivalent to the U.S.\u2019s <em>T+1 Playbook<\/em> for several reasons:<\/p>\n<ul>\n<li>Such a tool is needed in the U.S. because of the proportionally larger volume of capital markets participants, much broader range of service providers and vendors, and greater complexity of some systems and markets, as well as the lead that the U.S. is taking in the move to T+1.<\/li>\n<li>It is not required in Canada (nor was a Canadian version of the U.S. <em>T+2 Playbook<\/em> published for the T+2 move) because the Canadian marketplace is quite similar in many ways to the U.S. capital markets and, due to Canada\u2019s comparatively smaller capital markets size, it cannot reasonably go in a direction that differs materially from that of the U.S. The well-designed U.S. <em>T+1 Playbook<\/em> is therefore useful not just for American industry participants but also for Canadian ones.<\/li>\n<li>Finally, Canada\u2019s capital markets are more concentrated, with only a handful of large infrastructure providers, custodians, service bureaus, and vendors \u2013 many of which also operate in the States \u2013 linking all parties in the end-to-end processing chain, and significantly reducing delays and simplifying co-ordination.<\/li>\n<\/ul>\n<p>We encourage CCMA members to review the U.S. <em>T+1 Playbook<\/em> and use its workbooks.\u00a0 The CCMA will, as for T+2, provide complementary support where needed:\u00a0 a T+1 schedule that dovetails with the U.S.\u2019s, Canadian checklists and Canada-specific frequently-asked questions (FAQs), as well as other tools.[\/vc_toggle][vc_toggle title=&#8221;14. Will there be changes in the calculation of the Canadian ex-date for corporate action events in a T+1 environment? (added September 7, 2022)&#8221;]Corporate actions relative to exchange-traded securities trade with or without any associated income distribution depending on the corporate action\u2019s record date. The security trades without a dividend on the ex date \u2013 the trading day before the date of record in today\u2019s T+2 environment.\u00a0 In a T+1 environment, the ex and record dates will be the same \u2013 T+1 \u2013 in the U.S. and Canada.<\/p>\n<p>In some cases, an exchange may set a later ex-date, for example, due to challenges with stock or large cash dividends, and the securities will trade with a \u2018due bill.\u2019 \u00a0The U.S. has indicated that for trades with due bills, the ex date will be the same as the due bill redemption date, and Canada will adopt the same practice at the time of T+1 transition.<\/p>\n<p>Also impacted are \u2018protect\u2019 or letter-of-guarantee periods for voluntary corporate action event (e.g., rights subscription or tender offer) expiries, which usually align with the standard settlement structure (currently T+2) \u2013 investors can purchase securities even on the offer\u2019s expiration date, with the protect feature \u201ccovered\u201d once the securities settle in two days\u2019 time. \u00a0In a T+1 settlement cycle, the cover\/protect or letter-of-guarantee period will be the expiration date plus one (1) trading day.<\/p>\n<p>There will be a CDS external procedure change requiring regulatory non-disapproval, but no system or rule changes required for CDS.<\/p>\n<p>Finally, to reduce risk, the industry is requesting marketplaces to recommend that issuers try to avoid setting corporate-action-related dates during the days chosen to both start trading on a T+1 basis and the following day (T+1), which is a \u2018double settlement\u2019 date (trades the previous day due to be settled on T+1, as well as those from two business days prior settling on the \u2018old\u2019 T+2 basis).[\/vc_toggle][vc_toggle title=&#8221;13. Will Canada\u2019s buy-in process (the requirement to acquire securities to fulfill an investor\u2019s purchase order if securities are not on hand or returned from securities loans) change with the move to T+1? (added September 7, 2022)&#8221;]<\/p>\n<p>CDS will align Canadian buy-in processes with the changes being implemented in the U.S. as follows:<\/p>\n<table width=\"630\">\n<tbody>\n<tr>\n<td width=\"150\"><strong>Buy-in process<\/strong><\/td>\n<td width=\"228\"><strong>Current:\u00a0 <\/strong><\/p>\n<p>Buy-in intent can be submitted on T+2 and the intent will be executed on:<\/td>\n<td width=\"252\"><strong>Future buy-in process:<\/strong><\/p>\n<p>Buy-in intent can be submitted on T+1 and the intent will be executed on:<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From prior to 4:00-4:45 PM EST<\/td>\n<td width=\"228\">Notification Date plus 2 (N+2)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 1 (N+1)<\/td>\n<\/tr>\n<tr>\n<td width=\"150\">From 4:45 PM \u20137:30 PM EST<\/td>\n<td width=\"228\">Notification Date plus 3 (N+3)<\/td>\n<td width=\"252\">The intent will be executed on Notification Date plus 2 (N+2)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>[\/vc_toggle][vc_toggle title=&#8221;12. Will Canada be ready for T+1 on the same schedule as the U.S.? (added September 7, 2022)&#8221;]Yes. First, Canadian market participants have effectively managed the reduction in the North-American settlement cycle in the past.\u00a0 Second, at the two-years-to-T+2 implementation mark, the CCMA had only just hired T+2 project resources, and was able to successfully migrate to T+2 on September 5, 2017 with the U.S., whereas the CCMA started working on the T+1 project three years before scheduled T+1 transition.\u00a0 At the two-year mark for T+1 \u2013 although more challenging than the move to T+2 \u2013 the CCMA and its members already have agreed on a T+1 Asset List, achieved consensus on CDS Scheduler changes, and made material progress on operations and legal\/regulatory issue logs of issues.\u00a0 As well, many of those who worked on the T+2 project are again working on T+1, reducing the learning curve.\u00a0 Lastly, without any systems or operational changes at all, 90% of trades already could settle without difficulty at 4:00 p.m. ET.\u00a0 Whatever the 2024 migration date the U.S. Securities and Exchange Commission (SEC) chooses for T+1, Canadian capital markets will be ready to test and transition to the shorter cycle with American counterparts.[\/vc_toggle][vc_toggle title=&#8221;11. What is the process and timing currently for mutual fund pricing error corrections? (added May 23, 2022)&#8221;]If there is a pricing error that impacts trades that have already been reported in the Contract File (FS), fund companies have several options. They can issue new price files, reverse and reprocess the transactions with the correct price, or compensate accounts or deduct units.[\/vc_toggle][vc_toggle title=&#8221;10. Are there consequences or follow-up initiated if standard Fundserv timelines are not met? (added May 23, 2022)&#8221;]Late prices may delay the start of the overnight batch run. if it is extremely late, it may cause a fund company to miss the 6 a.m. ET Contract File (FS) cut-off. This could mean penalties and negative feedback from dealers that won&#8217;t receive the file in time to match pending orders. If this occurs, advisors will not see the trades contracted in investor accounts.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;9. Are mutual fund prices created more than once a day and, if, so under what conditions? (added May 23, 2022)&#8221;]No, prices are created only once a day.<\/p>\n<p><strong>\u00a0<\/strong>[\/vc_toggle][vc_toggle title=&#8221;8. When do fund companies strike mutual fund prices (is there a deadline)? (added May 23, 2022)&#8221;]Prices are normally struck by 5:30 pm, but it depends on the complexity of the portfolio. There isn&#8217;t a formal deadline, but they must be calculated before the Fundserv nightly batch run starts.[\/vc_toggle][vc_toggle title=&#8221;7. The U.S. securities regulator (Securities and Exchange Commission or SEC) issued a formal proposal on February 10, 2022, which, if adopted, would require moving to a standard T+1 settlement cycle by March 31, 2024, although the DTCC\/SIFMA\/ICI white paper said the first half of 2024. What is the Canadian marketplace going to do? (added February 17, 2022)&#8221;]Canadian market participants have committed to moving to T+1 on the same day as U.S. counterparts.\u00a0 Whatever the final date chosen, Canadian firms should target completing system and operational changes, and be well along in industrywide testing, by December 31, 2023.\u00a0 We are continuing to work with industry members and our American colleagues to confirm an integrated timeline, which will be posted once approved.[\/vc_toggle][vc_toggle title=&#8221;6. What is T+1? (added December 1, 2021)&#8221;]T+1 (and T+0, T+2, and T+3) refers to the number of days (as in a one-day gap) between trade execution (or T) and the related trade settlement (defined as the exchange of the buyer\u2019s payment for the trade to the seller in conjunction with the transfer of these securities from the seller to the buyer.[\/vc_toggle][vc_toggle title=&#8221;5. How can I know if my firm is involved or how can I get involved myself? (added December 1, 2021)&#8221;]Please visit\u00a0<a href=\"http:\/\/ccma-acmc.ca\/\">www.ccma-acmc.ca<\/a>\u00a0or e-mail Keith Evans at kevans@ccma-acmc.ca.[\/vc_toggle][vc_toggle title=&#8221;4. Do the settlement cycles in the U.S. and Canada need to remain harmonized and, if so, why? (added December 1, 2021)&#8221;]They don&#8217;t need to be, but should be harmonized to reduce risk, complexity and ultimately cost. A CCMA_commissioned <a href=\"http:\/\/ccma-acmc.ca\/en\/wp-content\/uploads\/Charles-River-Report-Nov10.pdf\">study<\/a> was completed in 1999 by Charles River Associates that indicated the Canadian capital markets should change the settlement cycle at the same time as the U.S. \u2013 neither before, nor after. About 40% of trades on Canadian stock exchanges are inter-listed securities (that is, a single security is listed on both Canadian and American exchanges) and Canada-U.S. cross-border transactions make up roughly 25% of the millions of trades processed annually through CDS. Different settlement dates would cause confusion for investors and increase the risk of errors with the associated cost of manual corrections.[\/vc_toggle][vc_toggle title=&#8221;3. Why do securities have different settlement cycles, and why aren\u2019t they the same day just as I can withdraw money from my account and it is processed the same day? (added December 1, 2021)&#8221;]The automation of both cash and securities markets advanced considerably during the 1980s, 1990s, and first decade of this century. However, the transfer of cash still remains much more straightforward than is the case with securities. A cash transfer requires agreement on and transfer of usually relatively small amounts on a particular date. In the case of securities, there are many more details to agree upon. For example, investment managers have 18 mandatory data elements per transaction to send to the broker-dealer and custodian, if allocating at the individual client level \u2014 and the amounts at risk can be considerably greater. Also, some investments involve on and offshore structures, where the offshore part will take longer to transact or involve illiquid securities where it may take extra days to sell an asset at a reasonable price.[\/vc_toggle][vc_toggle title=&#8221;2. What securities will be affected by the shortened cycle? (added December 1, 2021)&#8221;]In general, the main securities that are expected to be impacted are: all stocks or equities, all corporate bonds, and long-term government bonds with a remaining term to maturity of more than three years (TBC), as well as investment funds, including conventional mutual funds, exchange-traded funds or ETFs and hedge funds, as well as segregated funds and principle-protected notes.[\/vc_toggle][vc_toggle title=&#8221;1. How could this affect me as an investor? (added December 1, 2021)&#8221;]Many investors might experience no change at all, if they buy and sell using securities and cash they already have in their accounts. If they hold securities as certificates in physical form, however, investors have to deliver them to their dealer beforehand. If they are not selling securities already in their accounts or don\u2019t have enough cash, they will have to deposit cash to cover the transaction. Speak to your dealer or custodian to learn more details about the effect of any changes.[\/vc_toggle][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;container&#8221; padding_top=&#8221;&#8221; padding_bottom=&#8221;&#8221;][vc_column width=&#8221;1\/2&#8243;][vc_column_text] Frequently Asked Questions (FAQs) Below are FAQs, or links to FAQs, developed in the course of a number of capital markets industry projects. [\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text] Foire aux questions (FAQ) Voici les FAQ, ou liens vers des FAQ, d\u00e9velopp\u00e9es au cours de plusieurs projets dans l\u2019industrie des march\u00e9s financiers. [\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;container&#8221; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":70923,"menu_order":7,"comment_status":"closed","ping_status":"closed","template":"page-full-width.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-70889","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/pages\/70889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/comments?post=70889"}],"version-history":[{"count":163,"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/pages\/70889\/revisions"}],"predecessor-version":[{"id":77163,"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/pages\/70889\/revisions\/77163"}],"up":[{"embeddable":true,"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/pages\/70923"}],"wp:attachment":[{"href":"https:\/\/ccma-acmc.ca\/en\/wp-json\/wp\/v2\/media?parent=70889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}