The Canadian Depository for Securities is proposing moving forward the settlements to T+2 from T+3 on all issues trading in US dollars that fall on a US banking holiday.
The CDS is asking that its members respond to the proposal by April 30.
The CDS uses the US Federal Wire Service for US dollar settlements, which is closed on US bank holidays. As a result, all US dollar trades due to settle on a US bank holiday will fail. To alleviate this problem, a special settlement of T+2 is being proposed when T+3 settlement falls on a US bank holiday.
Currently there are 80 listed securities on the TSX and TSX Venture Exchange that trade in US dollars and more are expected to be added in the second quarter of 2004.