Canada to Move to One-Day Clearing and Settlement

July 18, 2001 ( - The Canadian Depository for Securities Limited (CDS) plans to speed up the clearing and settlement of debt and equity trades to one day after the transaction date (T+1), from the current three-day process (T+3).

The CDS will develop the plan in line with a trade-processing blueprint for improving clearing and settlement, set out by the Canadian Capital Markets Association (CCMA) in March, a cross industry group.

In providing a solution, CDS hopes to form partnerships with Canada’s Financial Models Company Inc, Omgeo and the Global Straight-Through Processing Association.

The exact form that the solution will take will be announced in the coming months.

– Camilla Klein