The Canadian Securities Administrators (CSA) recently issued reminders to market participants of the shortening of the standard settlement cycle from three days after the date of a trade (T+3) to two days after the date of a trade (T+2) on September 5, 2017.

CSA Staff Notice 24-314 Preparing for the Implementation of T+2 Settlement: Letter to Registered Firms (CSA Staff Notice 24-314), which was published on May 26, 2016, follows an earlier notice along the same lines published on April 2, 2015: CSA Staff Notice 24-312 Preparing for the Implementation of T+2 Settlement. CSA Staff Notice 24-314 advised market participants that Ultimate Designated Persons (UDPs) and Chief Compliance Officers (CCOs) of registered firms received a letter from the CSA advising of this upcoming development. The letter encourages registrants to prepare for the transition and provides some background information on the adoption of T+2 in other jurisdictions. For example, the change in Canada is being made to coincide with a similar change in U.S. securities markets and follows similar changes in most European markets (which transitioned in 2014) and in Australia and New Zealand (which transitioned earlier this year).

For further information, please consult CSA Staff Notice 24-314.