The Investment Industry Regulatory Organization of Canada (IIROC) is proposing a series of rule changes that would facilitate the move to shorten settlement cycles in 2017.
IIROC published a set of proposed amendments to both its dealer rules and its trading rules that are required to facilitate the investment industry's move to reduce the settlement cycle to the same timeline as the U.S. market, to the current trade date plus two business days (T+2) from the current T+3.
"The primary objective of the amendments is to ensure that IIROC's requirements support the investment industry's move to T+2 settlement at the same time as the U.S., which is scheduled for Sept. 5, 2017," says IIROC in a notice announcing the proposals.
The self-regulatory organization indicates that dealers are expected to benefit from both the planned reduction in the settlement cycle and continued harmonization with the U.S. market. However, it also notes that there will be technological implications of the change for dealers, too.
Comments on the proposals are due by Oct. 26.
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