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CDS and the T+2 Initiative
John McKenzie, President, The Canadian Depository for S ecurities Limited S eptember 18, 2015
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The road to T+2 for CDS
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CDS and the T+2 Initiative John McKenzie, President, The Canadian - - PowerPoint PPT Presentation
CDS and the T+2 Initiative John McKenzie, President, The Canadian - - PowerPoint PPT Presentation
CDS and the T+2 Initiative John McKenzie, President, The Canadian Depository for S ecurities Limited S eptember 18, 2015 1 The road to T+2 for CDS 2 What are we doing now Participate in the US T+2 S teering committee S upport the
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What are we doing now
- Participate in the US
T+2 S teering committee
- S
upport the re-establishment of the CCMA – T+2 S
teering Committee
– Working Groups
- Issue White Paper outlining impacts on CDS
’ systems, rules and procedures – S ept 2015
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Why is T+2 important to CDS
- Linkages between US
and Canadian markets – Impact on operational process
- S
ame Day Affirmation (S DA)
- Alignment between linked markets
- Localized impacts
– S
treamlined trade corrections for exchange trades
– S
ame Day Affirmation (S DA)
– Testing effort between infrastructure providers
- Exchanges
- S
ervice Bureaus
– Participant/ Industry Testing
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Current Initiatives that support T+2
- CNS
Early Novation – Advance the timing of netting/ novation of CNS
eligible trades to T+1 (from T+3)
– Implementation June 2016 – S
ettlement on T+3 until industry moves to T+2
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Future Impacts of T+2
- Timing changes to:
– Alerts – DTCC Reg S
HO close out settlements
– Timing of NS
CC payment obligations for CNS trades
- New functionality
– Exchange trade error correction interface
- S
upport Institutional Trade Compliance reporting requirements
- Rule and Procedure changes
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