NOTICE OF MINISTERIAL APPROVAL OF
AMENDMENTS TO NATIONAL INSTRUMENT 24-101
INSTITUTIONAL TRADE MATCHING AND SETTLEMENT
On June 26, 2017, the Minister of Finance approved amendments (Amendments) to National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101) under the Securities Act. NI 24-101 provides a framework in provincial securities regulation for ensuring efficient and timely settlement processing of trades, particularly institutional trades. The Amendments are made in anticipation of shortening the settlement cycle for equity and long-term debt market trades in Canada from three days after the date of a trade (T+3) to two days after the date of a trade (T+2), and to update, modernize and clarify certain provisions of NI 24-101.
The Commission had published for comment for 90 days proposed amendments to NI 24-101 in the Bulletin on August 18, 2016 at (2016), 39 OSCB 7225. Based on the comments received, the Commission substantially left the proposed amendments unchanged (except for certain proposed amendments to Part 6 of NI 24-101, which were withdrawn). The changes were incorporated into the Amendments, and published in the Bulletin on April 27, 2017 at (2017), 40 OSCB 3941, before being approved by the Minister on June 26, 2017.
The Amendments are expected to come into force no earlier than September 5, 2017, concurrent with the expected move to a T+2 settlement cycle in the United States. The Amendments will be published again in their final form in Part 5 of the Bulletin shortly before their coming into force.