Canadian registrants need to review their Canadian trades to confirm whether or not they are required to make a filing under new National Instrument 24-101, Institutional Trade Matching and Settlement (the Instrument) by February 14, 2008. Filing is required if trades on Canadian stock exchanges and alternative trading systems for the calendar quarter ended December 31, 2007 failed to meet the initial trade matching thresholds as prescribed by the Instrument. A new online reporting form became available on February 1, 2008.
Commencing the fourth quarter of 2007, registered dealers and advisers were required to establish, maintain and enforce policies and procedures designed to match delivery against payment or receipt against payment (DAP/RAP) by the end of the day on which the trade was executed (“T”).
Under the transition rules (the trigger for filing will vary until the end of 2009), a registrant must complete and deliver a report on Form 24-101F1, Registrant Exception Report of DAP/RAP Trade Reporting and Matching (the Form), to the applicable securities regulatory authorities no later than February 14, 2008 if less than 80% of the DAP/RAP trades (measured by volume or value) executed by the registrant (if a dealer) or for the registrant (if an adviser) between October 1 and December 31, 2007 have matched by noon on T+1 or by noon on T+2 for a DAP/RAP trade resulting from an order to buy or sell securities received from an institutional investor whose investment decisions are communicated from outside the western hemisphere.
Protocol for Online Electronic Delivery of Form 24-101F1
Effective February 1, 2008, as a registrant, you can complete an electronic version of the Form and submit it through the website of the CSA. When you submit the Form successfully, a copy of the Form showing a submission number and a date and time stamp will appear on your screen. The CSA requires that you print this Form, have it signed by the director, officer or partner submitting the Form, and keep the signed Form for your records.
Protocol for Manual Delivery of Form 24-101F1
Alternatively, you can print the Form from the link provided on the CSA website, complete and deliver it to the applicable securities regulatory authority in the jurisdiction where your head office is located via mail, fax or email. Fax numbers and email addresses for the applicable securities regulatory authority are provided in CSA Staff Notice 24-306 - NI 24-101 - Institutional Trade Matching and Settlement - Exception Reporting.