Canada's financial industry stands to benefit from shortened securities settlement cycle
TORONTO, Sept. 11, 2017 /CNW/ - CDS Clearing and Depository
Services Inc. (CDS), Canada's national securities depository, clearing and settlement hub, today
announced the successful transition to a two day securities settlement period, or T+2, from the previous three day period, or
T+3. Thursday, September 7, 2017 marked both the final settlement date for T+3 trades and the first
settlement date for T+2 trades.
The shift to T+2 is the result of the collective efforts of multiple stakeholders from across Canada's financial industry. Timed to coincide with the same change in U.S. markets, the move to settle
trades more quickly provides significant benefits to CDS's client base, enabling participants to better mitigate counterparty,
market and liquidity risks by reducing both outstanding settlements and associated replacement cost risks. T+2 also spurred an
increase in overall efficiency across organizations by streamlining and automating operational processes.
"CDS is proud to play a role in ushering in a new era in Canadian capital markets," said Glenn
Goucher, President, CDS. "The transition to T+2 required more than two years of collaborative work and we would like to
thank our clients and partners throughout the industry for helping to make this a success. We continue to pursue new client
solutions and to explore meaningful ways to enhance the value of the services CDS provides to the marketplace every day."
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including
equities, fixed income and energy. Toronto Stock Exchange,
TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for
Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, NGX, Shorcan, Shorcan Energy Brokers, AgriClear and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository
services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montréal, Calgary and Vancouver), in key U.S. markets (New
York, Houston) as well as in London, Beijing and Singapore. For more information about TMX Group, visit our
website at www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.
SOURCE Toronto Stock Exchange
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