By Jeff Sanford
(April 5 – 19:00 ET) – The authors of a recently released white paper on T+1 are hoping the industry will take advantage of the discussion period following its release to make comments and suggestions on the proposals contained in the paper.
“We’ve got the white paper out and what we want is people to review it and provide feedback,” says Gary Stephenson, chair of the Canadian Capital Markets Association institutional trade processing working committee, the group that produced the paper. The comment period is open until May 8.
“We’re looking for input models presented and best way for Canada to go with respect to implementation of T+1.”
The white paper was reviewed in an article in the April 2001 issue of Investment Executive. (The white paper can be read at www.ccma-acmc.ca. Comments can be submitted at the same Web site).
The IE article extensively quoted one of the authors of the white paper who said that the working group had reached consensus about one of the models introduced in the paper. According to Stephenson, though, no final decision has been made and the group wants to hear from the industry with respect to the other models mentioned in the paper.
“There may be some advantages and disadvantages to the models presented that we haven’t thought of that are out there,” says Stephenson about the comment period.
The five models presented in the paper are:
- Develop a new “made in Canada” solution from scratch;
- Adopt the solution being developed by the Global Straight Through Processing Association, an association of financial firms that has developed an international T+1 solution;
- License the software from the GSTPA solution, but modify it for the Canadian market;
- Adopt a design produced by the Financial Models Company Inc.; or
- Adopt a design put forward by Thomson Financial Electronic Settlements Group and the U.S. Depository Trust & Clearing Corporation.