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It’s Time to Settle: Preparing for T+1 Settlement in Canada and Globally

August 01, 2023

Straight Talk – August 1, 2023


It’s Time to Settle: Preparing for T+1 Settlement in Canada and Globally

Richard Anton, Chief Operations OfficerAs Canadian and U.S. market stakeholders prepare to shorten the settlement cycle to T+1, it becomes imperative to critically analyze the multifaceted considerations that financial institutions, market participants and regulators are poised to encounter during the shift.

S&P Global Market Intelligence and Global Custodian recently explored the challenges to settling on T+1, including legacy technology, asset class range, FX and cross-border complications, practical issues in settlement compression, and limits to the ambition for further settlement reduction.

The findings from its latest report state that while many firms across the globe along the transaction chain have already set out their path to prepare for May 2024, only 12 per cent consider themselves ahead of the curve.

Here in Canada, the Canadian Capital Markets Association (CCMA) asked marketplaces, custodians, service bureaus and technology vendors to provide readiness updates every second month for the industry to see how other stakeholders are preparing for the move to T+1 settlement.

CIBC Mellon will continue to provide clients with updates as they relate to T+1 settlement in Canada and CIBC Mellon’s supportive efforts. CIBC Mellon’s custody system is currently settling trading activities across a wide range of settlement cycles. We bring considerable settlement experience and are taking steps with the relevant market utilities and entities to affirm that our technology and operational procedures are appropriately updated.

For more information, read “No Time to Settle? Getting Ready for T+1 and Beyond.”

Ontario Securities Commission Publishes Summary Report for Dealers, Advisers and Investment Fund Managers

The Ontario Securities Commission (OSC) recently published its 2023 summary report for dealers, advisers and investment fund managers.

The OSC notes that its report provides information to help registrants comply with requirements under Ontario securities law, including matters impacting registration, outcomes from compliance reviews, and areas of focus for the OSC’s Compliance and Registrant Regulation staff in the coming fiscal year.

For more information, read the OSC’s summary report.

Canada’s Office of the Superintendent of Financial Institutions Launches Consultation on Regulatory Capital and Liquidity Treatment of Crypto-Asset Exposure

Canada’s Office of the Superintendent of Financial Institutions (OSFI) recently proposed changes to its capital and liquidity approach to crypto-assets to reflect an evolving risk environment and international developments.

OSFI introduced two draft guidelines, one for federally regulated deposit-taking institutions and another for insurers, on the regulatory capital treatment of crypto-asset exposures.

OSFI will be accepting comments on its draft guidelines until September 20, 2023. For more information, read OSFI’s news release.

The Responsible Investment Association Releases Latest Magazine

The latest edition of the Responsible Investment Association’s (RIA) Magazine presents a digital collection of thought leadership content including op-eds, case studies and other insights on the latest issues and trends in responsible investment.

For more information, read the RIA’s magazine.

Change in CDS Operating Schedule due to the Civic Holiday on August 7, 2023

The Canadian Depository for Securities (CDS) has advised market participants that Monday, August 7 is an industry holiday in Ontario, Alberta and British Columbia due to the Civic Holiday. Canadian exchanges will be closed on Monday, August 7, while the Montreal Exchange, along with transfer agents and banks in Quebec will be open. CDS confirms that LYNX will be fully operational, and CDS will be open for settlements.

Since Monday, August 7 will be a non-settlement day in Canada, settlement is not guaranteed as participants may have their CDS ledgers closed.

For more information and to view the CDS operating schedule that will be in effect, view the CDS bulletin. If you have any questions, please contact your Relationship Manager. For a full listing of 2023 holidays in Canada, download CIBC Mellon's 2023 calendar.




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.