Canada: Settlement trade matching policy deadlines reminder

01.06.2021

National Instrument (NI)24-101 was introduced in Canada to provide a legislative framework that ensures more efficient and timely processing and settlement of institutional trades. 

As part of the NI24-101 Amendments (Institutional Trade Matching and Settlement), the institutional investors outside the western hemisphere are no longer allowed an additional 24 hours to match their trades.

In order to increase settlement efficiency and to avoid delays and failed trades, Clearstream Banking1 would like to remind its customers to matchtheir trades with the local Canadian counterparties by 17:00 CET (11:00 PM EDT) on Trade Date +1 at the latest.

CBL participants are also reminded to instruct trades with U.S./DTC counterparties by 20:00 CET (14:00 EDT) on Trade Date +1.

Impact on customers

While there is no penalty for late matching, CBL participants are requested to adjust their process in order to match earlier on T+1 by 17:00 CET (11:00 PM EDT).

CBL settlement system can support the instruction to be send to the local market at the earliest by 15:00 CET (09:00 EDT) on SD-1, which permits such matching to occur as per the NI24-101.

If instructions are sent later, they will be released to the market but will not be presented for settlement until the next business day.

Further Information

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

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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.