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 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 3

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 4

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 5

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 6

THANK YOU 7