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

30.08.2017

Further to announcement A17113, Clearstream Banking1 provides customers with additional information about the T+2 settlement cycle for the U.S. and Canadian markets prior to implementation on 5 September 2017.

U.S.A.

The Depository Trust and Clearing Corporation (DTCC), the Industry Steering Committee (ISC) and the Securities Industry and the Financial Markets Association (SIFMA) have published additional documentation to further enforce the T+2 conversion, as follows:

Canada

To facilitate Canada’s transition to a T+2 settlement cycle, the Canadian Securities Administrators (CSA) published final amendments to National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101).

Effective 5 September 2017, RBC Investor & Treasury Services, as Clearstream Banking’s depository in Canada, consequently requires Clearstream customers to instruct as follows :

  • Canadian trades by 17:00 CET T+1 (11:00 EST T+1) (Matching deadlines)
  • Trades with U.S./DTC counterparties by 20:00 CET T+1 (14:00 EST T+1)

As part of the NI (National Instrument) 24-101 Amendments, institutional investors outside the western hemisphere will no longer be allowed an additional 24 hours to match their trades and will have to match their trades by 17:00 CET T+1 (11:00 EST T+1).

Existing settlement deadlines for counterparties in the Canadian domestic market and for counterparties in DTC remain applicable and are available in the Creation Link Guide - Canada.

Further information

For further information, customers may contact Client Services or their Relationship Officer.

1. 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.