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National Instrument 24-101
NI24-101
National Instrument 24-101 provides a framework in securities legislation for ensuring more efficient and timely processing of institutional trades. It requires participants in the institutional trading process to have in place processes and procedures that allow trade matching within prescribed limits which will be phased in over the timeline indicated below.
To facilitate account servicing and to comply with the regulatory requirements of NI 24-101 of the Canadian Securities Administrators and their provincial counterparts, TD Asset Management (TDAM), is required to ensure compliance with the central requirements of the instrument for all institutional trades. The regulation is available here.
The main requirements include:
-
A Trade Matching Statement or Trade Matching Agreement
This document confirms that your entity has the processes and procedures in place, based on industry best practice that allows it to meet the transitional matching requirements set out. The regulation states that a registered broker dealer shall not open an account to execute a DAP/RAP trade for an institutional client or accept an order to execute a DAP/RAP trade for an account of an institutional client unless each trade-matching party entered into a trade matching agreement or provided a trade matching statement to the dealer (CSA Notice 24-101 Section 3.2). -
Transitional Matching Targets
|
For trades executed during Calendar Quarters shown |
Matching Deadline for trades executed on T |
|---|---|
|
Q1 through Q4 2009 |
12:00 PM (Noon) on T+1 |
|
Q1 and Q2 2010 |
12:00 PM (Noon) on T+1 |
|
Q3 and Q4 2010 |
11:59 PM on T |
|
Q1 and Q2 2011 |
11:59 PM on T |
|
Q3 and Q4 2011 |
11:59 PM on T |
|
2012 to, but before May 28, 2024 |
11:59 PM on T |
|
May 28, 2024 and beyond |
3:59am on T+1 |
* These targets are based on both the aggregate numbers of institutional trades and their aggregate dollar value.
In order to comply with the above requirements we will require a signed written statement from your entity confirming that it has established, maintains and enforces policies and procedures designed to achieve trade matching as soon as practical after a trade is executed.
TDAM encourages all our clients to take the opportunity to view the web-casts of seminars held by the Canadian Capital Markets Association. Information regarding this regulation is available here.
At TDAM, our objective is to deliver product and service excellence. We appreciate your assistance in ensuring compliance with National Instrument 24-101. On behalf of TDAM, we welcome the opportunity to be of service and look forward to further developing our relationship.