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The move to a one-day settlement cycle or ‘T+1’ is almost here, coming into effect in Canada on May 27, 2024, and in the US on May 28, 2024.

Changing the settlement cycle from T+2 to T+1 benefits investors and reduces transactional risks to market participants. T+1 means that trade-related settlements will occur within one business day of a trade date, so investors will see the funds in their account or receive their shares faster. It also reduces the time for investors to be notified of any non-payment or not receiving shares purchased by a full day.

In anticipation of this change, Computershare has had a dedicated T+1 project management team in place for some time. Our team has decades of experience managing market changes like this and are looking forward to a smooth transition.

As a reminder, we encourage your organization to review two items related to T+1:

  • Your company’s shareowner communications that reference settlement date will need to be updated. This can include form letters, websites, internal policies/procedures and registered plan prospectuses.
  • Processes at your company built around settlement date, such as option issuances, treasury buybacks, and other share movements. Specifically, letters of instruction should reflect the change to T+1 and you may need to review timelines and hand-offs with your third-party providers or brokers.

Also, if your company is planning a voluntary corporate action that expires after May 27, 2024, and will have a guaranteed delivery period, please be aware the guaranteed delivery period will need to be shortened by one trading day.

Additional T+1 information is available at TMX CDS https://www.cds.ca.

If you have questions or would like more information, please contact your Relationship Manager who can connect you with our T+1 subject matter experts or complete the form.

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