An Update on T+1 Settlement Efforts: Canadian Outlook and Considerations

November 15, 2022

Straight Talk – November 15, 2022

An Update on T+1 Settlement Efforts: Canadian Outlook and Considerations

Lou LesnikaCanadian financial services market participants and stakeholders are gearing up after a year of discussions revolving around a reduced settlement cycle. With U.S. industry leads now formally announcing efforts to accelerate the securities settlement cycle to T+1 from T+2, industry participants are assessing their operating models and general readiness.

Canadian market stakeholders including Canadian central depositories, the Canadian Capital Markets Association (CCMA), and industry participants including CIBC Mellon are all preparing diligently to shorten the settlement cycle in Canada to T+1.

CIBC Mellon is playing an active role in the readiness and consultations taking place across the industry leading up to the T+1 implementation. On top of creating a project team to assess the operational impacts of T+1, CIBC Mellon employees actively participate in various T+1 working groups with key industry stakeholders in order to stay at the forefront of regulatory and industry changes.

For more information, read our paper and see the CCMA’s T+1 resources.

The Canadian Securities Administrators Seek Input on Regulatory Regime for Accessing Real-Time Market Data

The Canadian Securities Administrators (CSA) recently announced that it is seeking input on improving access to real-time market data for equity securities, including several proposed regulatory options to improve its availability.

The CSA’s Consultation Paper 21-403 – Access to Real Time Market Data includes proposed options that may address the concerns raised by market participants. The CSA requests that all comments are submitted by February 10, 2023.

For more information, see the CSA’s news release.

The Government of Canada Market Functioning Steering Group Publishes Consultation on Proposed Fee for Failing to Settle Government of Canada Securities

The Government of Canada Market Functioning Steering Group (GMF) recently published a consultation paper on a proposed fee for failing to settle Government of Canada bond and bill transactions.

The GMF states that it is seeking market participants’ support in moving the initiative ahead, and will consider the feedback received to determine whether to adjust any of the parameters relating to the proposed fail fee and the associated timelines.

For more information, read the market notice.

The Board of the International Organization of Securities Commissions Launches Consultation on the Development of Sound Carbon Markets

The Board of the International Organization of Securities Commissions (IOSCO) recently launched a public consultation on recommendations for establishing sound compliance carbon markets and on key considerations for enhancing the resilience and integrity of voluntary carbon markets.

IOSCO requests feedback from market participants on how to foster fair and functional markets and increase structural resilience to ensure these markets achieve their environmental objectives.

For more information, read IOSCO’s news release.

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.