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T+2 Settlement begins on Trade Date Sept 5, 2017

  • Last Updated:
  • Aug 16th, 2017 2:46 pm
[OP]
Member
Aug 17, 2008
485 posts
133 upvotes

T+2 Settlement begins on Trade Date Sept 5, 2017

The SEC has adopted Trade Date +2 as the Settlement Date beginning with trades on Sept 5, 2017 to settle Sept 7, 2017. https://www.sec.gov/news/press-release/2017-68-0

Canadian regulators and the industry have adopted the same policy to align with the US. More information can be found here.

From IFR/Reuters: " NOTE: starting on September 5, 2017, Canadian and American securities markets will change the trade settlement cycle on certain securities from 3 days to 2 days. As a result, September 7th will be a double settlement day for trades executed on September 1st and 5th. The new settlement rules apply to all GOC, provincial and corporate bonds as well as stocks."
7 replies
Deal Fanatic
User avatar
Mar 9, 2007
7478 posts
2412 upvotes
Toronto
IIROC regulatory changes coming mid September!!!!

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Deal Addict
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Feb 25, 2014
2116 posts
301 upvotes
Mississauga
Why not T. I think it should be possible in 2017.
Oh sada kehra bapu karda black nee, Jehra tere shahir (Toronto), Le lawan flat nee
Deal Addict
Jun 3, 2009
3549 posts
407 upvotes
Montreal
So will the same change applicable for ex dividend/record date?
Sr. Member
Aug 19, 2016
617 posts
182 upvotes
MehtabS wrote:
Aug 12th, 2017 7:47 am
Why not T. I think it should be possible in 2017.
They need some times to find the stocks lol.
Deal Fanatic
User avatar
Jul 17, 2008
7227 posts
1177 upvotes
I liked the T+3. I prefer to keep my cash in a high interest hisa, and be able to transfer the money after the execution happened. Luckily at T+2 it's still possible if i initiate the transfer the same day.

At T and maybe even T+1 might require to have the money in the brokerage before executing to cover
Deal Expert
Aug 26, 2001
15620 posts
432 upvotes
Oak Ridges, ON
Messerschmitt wrote:
Aug 14th, 2017 7:09 am
I liked the T+3. I prefer to keep my cash in a high interest hisa, and be able to transfer the money after the execution happened. Luckily at T+2 it's still possible if i initiate the transfer the same day.

At T and maybe even T+1 might require to have the money in the brokerage before executing to cover
Yes. So now the challenge will be: what if you have a limit sell/buy which goes into effect at 3:50pm -- you're in a business meeting and you only get out at 4:30pm, so by the time you see the Notification on your phone, and initiate a Sell on your HISA ETF, it's 4:45pm. Obviously a next-day transaction. Will you get the money in time? I'm guessing not...

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