U.S.A., Canada and Mexico: T+2 implementation

04.08.2017

Clearstream Banking1 reminds customers that the U.S., Canadian and Mexican markets will shorten their settlement cycles from T+3 to T+2 on

5 September 2017

for the following types of securities:

U.S.A

Stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange (Marketflashes M15004, M15014 and M17011)

Canada

Equities

Mexico

Equities and warrants (Marketflash M17009)

Transition timeline

U.S.A. and Canada

As Tuesday 5 September 2017 is T+2 implementation date, and given that Monday 4 September 2017 is the Labor Day holiday in the US and Canada, Thursday 7 September 2017 will be a double settlement day for the instrument types in scope:

  • Trades executed Friday 1 September 2017 will settle on a T+3 basis on Thursday 7 September 2017.
  • Trades executed on Tuesday 5 September 2017 will settle on a T+2 basis on Thursday 7 September 2017.

Mexico

Starting Tuesday 5 September 2017 trades will settle on a T+2 basis.

Corporate actions and income proceeds

U.S.A. and Canada

For the instruments in scope, the period between ex-date and record date will be reduced by one business day. As a result, after the transition to T+2, the ex-date will be only one business day prior to record date.

Mexico

We will monitor the situation and will inform you accordingly.

Settlement deadlines

U.S.A.

Effective Tuesday 5 September 2017, the new  deadline for book entry settlement via DTC’s institution Delivery (ID) service for receipt and deliveries against payment instructions will be 16:55 SD-1 CET (10:55 SD-1 EST).  

All other existing settlement deadlines for the U.S. market remain applicable.

Canada and Mexico

The existing settlement deadlines remain.

Further information

We continue to monitor this initiative as it develops and will provide further information as it becomes available.

----------------------------------

Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.