Important Notice
Settlement cycle for US, Canadian and Mexican securities are shortened from T+2 to T+1
Why
- The Securities and Exchange Commission adopted a shortened settlement cycle for various US securities from two (2) business days after the trade day (T+2) to one (1( business day after the trade day (T+1);
- The Canadian Capital Markets Association and the Contraparte Central de Valores (CCV) of Mexico also reduced its standard securities clearing and settlement cycle to T+1
- These changes are expected to enhance (i) investors’ protection by reducing credit risk and (ii) trading process efficiency.
Effective Date
This new T+1 settlement cycle is effective from:-
- 27 May 2024 - for Canadian and Mexican securities
- 28 May 2024 - for US securities
Securities
refer to:
- Equities
- Exchange traded funds
- American depository receipts’
- Warrants / rights
- Fixed income bonds (including corporate and sovereign debt) and
- Unit investment trusts
For Over-the-Counter derivatives and structured notes which reference the abovementioned in-scope securities, please refer to the respective offering documentation for the settlement cycle details.
Please ensure sufficient fund in your account for this shortened settlement cycle
Your account will be credited/debited one (1) business day after the trade date (T+1) for transaction of the abovementioned in-scope product.
- Please ensure there is sufficient fund in your account for this shortened settlement cycle.
- Question, please feel free to contact your Relationship Manager. Thank you.