The Ontario Securities Commission (OSC) has approved proposed changes to the Investment Industry Regulatory Organization of Canada’s (IIROC) rules to facilitate the investment industry’s move to a shorter settlement cycle later this year.

IIROC’s new rules are designed to support the investment industry’s move from a T+3 (trade date plus three business days) settlement cycle to a T+2 settlement cycle. The move is expected to take place on Sept. 5, following the same move in the U.S.

“Among other things, the amendments are intended to ensure that the transition to a T+2 settlement cycle in Canada is harmonized with the move to a T+2 settlement cycle in the U.S., given the close connections between the markets in both countries,” a regulatory notice says.

In addition, the move to T+2 settlement will align North American markets with the other major global markets, such as Europe, Hong Kong, and Australia, which have already made the transition to T+2.