ACCELERATED SECURITIES SETTLEMENT CYCLE COMING IN 2024: U.S. RELEASES ‘T+1’ ROAD MAP
The U.S. securities industry announced intentions to accelerate settlement cycle to ‘T+1’, targeting implementation for the first half of 2024. An Industry Implementation Playbook was released, providing a timeline with milestones and dependencies.
Accelerated settlement reduces risks for investors and market participants, and lowers dealer collateral costs.
The U.S announcement was expected, and preliminary planning has been underway in Canada to ensure continued alignment with U.S. and Canadian settlement practices. In 2017, Canadian and U.S. markets successfully moved lock-step to accelerate settlement from T+3 to T+2.
The Canadian Capital Markets Association (CCMA) will again coordinate industry efforts in Canada. IIAC staff will participate on various CCMA committees to manage Canada’s T+1 implementation. The IIAC will draw on the expertise of members, when necessary.
For additional information, please contact Jack Rando.