Shorter trade settlement period starting May 2024 | Investing | Discussion forum

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Shorter trade settlement period starting May 2024
January 15, 2024
5:21 am
hwyc
GTA
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North American capital markets will shorten the standard settlement cycle for most trades in securities from two days after the date of the trade (T+2) to one day after the date of the trade (T+1).

Canadian capital markets supposedly to start on Monday, May 27, 2024 and U.S. on Tuesday, May 28, 2024.

Please monitor these changes as the dates approach.

March 16, 2024
4:42 am
kesa
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reminder. this will impact the active traders.
Screenshot-2024-03-16-at-7.21.22 AM.png

Please be advised, that Canadian capital markets will shorten the trade settlement cycle to one business day starting Monday, May 27, 2024. For U.S. market participants, the shortened trade settlement cycle is expected to start Tuesday, May 28, 2024. This change will impact trades for stocks, Exchange-Traded Funds, fixed income securities and most mutual funds.

What does this mean for you?

Once the change is implemented, your trades involving the securities mentioned above will settle sooner (one business day) than their current settlement time (two business days). Please note, if you make a security purchase, you will also need to have sufficient funds available within the shortened trade settlement cycle of one business day.

If you want to purchase a security and settle it by selling a mutual fund, which may include money market funds, you will need to place the sell order before the deadline of 3 p.m. ET on the same day of the purchase. Orders placed after the deadline will settle two business days later and you may be subject to interest charges on any settled debit amounts.

March 16, 2024
7:18 am
AltaRed
BC Interior
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Some brokerages could have an earlier cut off time of 2pm or 2:30pm for MMFs and ISAs so that is potentially even more exposure between then and exchange COB of 4pm. I simply don't trade near the end of the trading day anyway (nor the open either for that matter).

March 20, 2024
7:03 am
Norman1
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Canadian T+1 Asset List from the Canadian Capital Markets Association lists affected securities.

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