CDS preparing for move to T+2 Settlement
Over the past several years, the global financial industry has increased efforts to mitigate operational and systemic risk in capital markets. A key tactical measure in this initiative is the move to settle trades more quickly in order to reduce margin and liquidity needs during times of economic volatility and to lessen credit and counterparty exposure. Canada has committed to shortening the securities settlement cycle from the current three day period, or T+3, to a two day period, or T+2, by the third quarter of 2017, in parallel with U.S. timelines. This transition will require collaboration from stakeholders across Canada's financial industry. CDS has published a white paper covering the company's readiness to move to a T+2 settlement cycle.