To reduce market inefficiencies, Canadian and U.S. securities markets are moving to a standard trade settlement cycle of T+1 for investments that currently settle on a T+2 basis. According to a new report from Moody’s Ratings, the move to a T+1 settlement cycle in Canada will create liquidity risk for asset managers in markets that are still operating on a T+2 basis. The move to a T+1 settlement cycle in Canada, will occur on May 27, 2024.
