RBC Investor Services | T+1 Readiness Checklist

Ready for the transition to T+1? Use the checklist below to ensure you’ve considered the key impacts of a shortened settlement cycle.

EVALUATE CURRENT OPERATING MODEL

Document end-to-end trade process from order placement to settlement
Identify manual processes within your existing trade management workflow (e.g., front/middle/back office, including broker, custodian, fund accountant, transfer agent activities)
Identify current process for trade confirmations and affirmations
Determine the number of trades matched on T versus T+1, T+2 or T+3
Identify existing STP and failed trade rates and impact of late settlement
Closely monitor trade settlement activity in months leading up to and immediately following T+1 transition
Confirm if trade matching and other trade processes are manual or supported by market utilities
Determine access to consolidated real-time reporting or reliance on trade status email updates
Confirm current method of communication with counterparties, custodians and other participants
Identify “key person” dependencies and other risks within operating model

Review transition plans of brokers, custodians, transfer agents, fund accountants and other service providers
Assess T+1 funding implications, including ability to buy or sell CAD earlier or change the settlement cycle of foreign exchange transactions
Identify technical upgrades to automate and streamline the end-to-end trade process
Identify solutions for trade confirmations and affirmations to meet the 9:00 pm and 3:59 am deadlines in the US and Canada
Determine cost and implementation timelines for new technologies and market utilities, along with ongoing maintenance costs to support resiliency, business continuity, cyber security, system maintenance and data consolidation
Evaluate potential to outsource in-house operations to a third-party specialist provider to meet T+1 operational requirements and prepare for the future shift to T+0
Identify resource requirements for non-standard Canadian work hours to support trade deadlines

Implement outsourced solution or any new technologies or market utilities prior to T+1 transition date
Communicate operating model changes to impacted employees and provide any required training or support
Make any required updates to policies and procedures that relate to settlement cycle
Make any required updates to Standing Settlement Instructions (SSIs) for counterparties
Develop and implement business continuity plan to support new operating model and T+1 trading activity
Continue to closely monitor trade settlement activity in the months leading up to and following the T+1 transition and make any required adjustments to the operating model as required