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Earlier this year the Canadian Capital Markets Association (CCMA) announced a change to shorten the securities settlement cycle from two business days after the trade date (T+2) to one business day (T+1), effective Monday, May 27, 2024. The decision is in sync with the US Securities and Exchange Commission (SEC) decision to adopt T+1 given the interconnectivity of North American markets. The SEC mandated the transition date for T+1 as Tuesday, May 28, 2024, due to the Memorial Day holiday on May 27.
The move to T+1 settlement in both Canada and the US benefits investors and reduces transactional risks to market participants. T+1 means that trade-related settlements will occur within 24 hours of a trade date, so investors will see the funds in their account or receive their shares faster. It also reduces the risk for investors of non-payment or not receiving shares purchased by a full day.
In anticipation of this change, Computershare has had a dedicated T+1 project management team in place for some time. Our team has decades of experience managing market changes like this, and in rallying our global resources and infrastructure to ensure the services we provide you are compliant on day one.
If you would like to discuss this rule change or other pending market structure changes, please contact your Relationship Manager, and we will be happy to schedule time with our experts.
Computershare will continue to keep you updated on this topic as more information becomes available.