By moving to T+2, the US and Canada are moving in line with other developed markets, including Europe, the UK, Australia and New Zealand. A shorter settlement cycle helps to reduce risk in markets by reducing the exposure between parties to a trade, also leading to more efficient markets. JBWere clients should be aware of this change, for example a buy trade executed in US or CA stocks on 5th Sep will settle one day earlier, meaning you will need to ensure funds are available one day earlier than previously.
|Trade date||Settlement date||Settlement cycle|
|Fri 01 Sep 2017||7 Sep 2017||T+3|
|Mon 04 Sep 2017||Market Holiday - Labor Day|
|Tue 05 Sep 2017||7 Sep 2017||T+2|
The good news is that bringing these markets into line with other global markets should make it simpler to trade between markets. For example, if you are selling a UK stock to fund the purchase of a US stock, the settlement date for each of those trades will now be on the same day. If you have any questions about T+2 settlement, please talk to your JBWere adviser. Further information on T+2 is available here.