Newsroom

Update on T+1 Settlement Efforts

November 16, 2021

Straight Talk – November 16, 2021

Update on T+1 Settlement Efforts

Lou Lesnika

Canadian and U.S. market stakeholders, including U.S. and Canadian central depositories, the Canadian Capital Markets Association, and industry participants such as CIBC Mellon, have begun work designed to shorten the settlement cycle in Canada to T+1, the day after trade date.

In its latest paper, “Advancing Together: Leading the Industry to Accelerated Settlement,” Depository Trust & Clearing Corporation (DTCC) highlights the immediate benefits of moving to a T+1 settlement cycle, including cost savings, reduced market risk and lower margin requirements, as well as the firm’s plans for galvanizing the necessary support for the project across a wide range of market participants.

CIBC Mellon is playing an active role in the readiness and consultations taking place across the industry leading up to the implementation. We will continue to provide clients with updates as they relate to the T+1 settlement in Canada and CIBC Mellon’s supportive efforts. If you have any questions, please reach out to your Relationship Manager.

For more information, read our latest paper, “Update on T+1 Settlement Efforts in the U.S.: Canadian Outlook and Considerations.

ICE Benchmark Administration Launches U.S. Dollar SOFR ICE Swap Rate® for Use as a Benchmark

On November 8, 2021, Intercontinental Exchange, Inc. (ICE) announced that ICE Benchmark Administration Ltd. (IBA) launched its U.S. dollar SOFR ICE Swap Rate® for use as a benchmark in financial contracts and financial instruments by licensees.

The launch of the U.S. dollar SOFR ICE Swap Rate benchmark follows the successful publication of U.S. dollar SOFR ICE Swap Rate settings on an indicative, ‘Beta’ basis since October 1, 2021.

The U.S. dollar SOFR ICE Swap Rate settings are available for the same tenors and published at the same time as the current U.S. dollar LIBOR ‘1100’ ICE Swap Rate benchmark. You can view the settings on ICE’s website or read the entire announcement.

For additional information on LIBOR, the Canadian Dollar Offered Rate (CDOR) or the Canadian Overnight Repo Rate Average (CORRA), visit CIBC Mellon’s website or contact your CIBC Mellon Relationship Manager.

Canada’s Office of the Superintendent of Financial Institutions Releases Draft Guideline on Technology and Cyber Risk Management

Canada’s Office of the Superintendent of Financial Institutions (OSFI) released a draft guideline establishing its expectations related to technology and cyber risk management and applies to all federally regulated financial institutions (FRFIs).

OSFI states that these expectations aim to support FRFIs in developing greater resilience to technology and cyber risks.

For more information, see OSFI’s guideline.




Straight Talk is provided for general information purposes only and CIBC Mellon Global Securities Services Company, CIBC Mellon Trust Company, CIBC, The Bank of New York Mellon Corporation and their affiliates make no representations or warranties as to its accuracy or completeness, nor do any of them take any responsibility for third parties to which reference may be made.  Readers should be aware the content of this publication should not be regarded as legal, accounting, investment, financial, tax or other professional advice nor is it intended for such use.