Amendments to facilitate the investment industry’s move to T+1 settlement

New Self-Regulatory Organization of Canada (New SRO) is proposing amendments to the Universal Market Integrity Rules (UMIR) and Investment Dealer and Partially Consolidated Rules (IDPC Rules) (collectively, the Proposed Amendments) to facilitate the investment industry’s move from a trade date plus two business days (T+2) settlement cycle to a trade date plus one business day (T+1) settlement cycle.

The primary objective of the Proposed Amendments is to ensure that the New SRO’s requirements support the investment industry’s move to T+1 settlement.

The Proposed Amendments:

• harmonize the UMIR and IDPC Rules with the T+1 settlement cycle by shortening delivery and settlement periods by one day,
• modernize the IDPC Rules related to buy-ins and physical delivery,
• repeal requirements for Dealer Members (Dealers) to file broker-to-broker trade matching exception reports, for consistency with the proposed revisions to National Instrument 24-101 – Institutional Trade Matching and Settlement, and
• align IDPC Rules referencing settlement periods of mortgage-backed securities to the industry settlement periods set under the NHA Mortgage-Backed Securities (MBS) Program.