The Ontario Securities Commission has released an analysis of failed trades following Canada’s move to a T+1 settlement cycle for listed securities. The research finds market participants adjusted to the shorter settlement window without major market disruption, with no significant change in key failed-trade measures after implementation. The settlement cycle was shortened from T+2 to T+1 on May 27, 2024, and OSC Staff reviewed failed trades across different security types and listing markets. Using Canadian Depository for Securities Limited (TMX CDS) data from January 2021 to June 2025, the analysis found no significant change in either the proportion of securities with failed trades or the proportion of total traded value that failed to settle on time after T+1 was introduced.
Ontario Securities Commission 2025-09-24
Ontario Securities Commission research finds T+1 settlement shift did not materially change failed trades in Canada
The Ontario Securities Commission released an analysis on the impact of Canada's transition to a T+1 settlement cycle for listed securities. The research indicates that market participants adapted to the shorter settlement window without major disruption, with no significant change in failed-trade measures post-implementation. The analysis utilized TMX CDS data from January 2021 to June 2025.