Transition to T+1 Settlement

In 2024, 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). The expected benefit of a shortened settlement cycle is to reduce counterparty risk and increase overall market efficiency. The U.S. Securities and Exchange Commission mandated Tuesday, May 28, 2024, after the Memorial Day long weekend, as the T+1 transition date for U.S market participants. The first day of T+1 trading in Canada will be Monday, May 27, 2024.

 

National Bank, and its subsidiaries, National Bank Financial Inc. and National Bank of Canada Financial Inc., are actively preparing for the transition to T+1. Along with working with various industry working groups, we have created a dedicated multi-disciplinary project team to assess the impacts of the change on both our internal systems and how we interact with our clients. With this commitment of resources, we expect to be fully equipped to manage the T+1 transition.

 

For those interested in more information on the reasons for the change and expected impacts, as well as current industry thinking, we refer you to the following resources: