Upcoming implementation of T+1 settlement cycle

Montreal Exchange (the "Bourse") wishes to inform market participants that, in conjunction with the industry-wide efforts to transition to a T+1 settlement cycle as of May 27, 2024 (in Canada), the Bourse and CDCC are working towards adjusting their rules and relative procedures to implement the required change before the aforementioned scheduled effective date. The changes will ensure a smooth transition to a t+1 environment, in line with Canadian market best practices.

Therefore, subject to obtaining the regulatory approvals and to the Canadian industry moving forward with the implementation of the T+1 as of May 27, 2024, the Bourse wishes to highlight that the First and Last Notice Day of the 2-Year (CGZ), 5-Year (CGF) and 10-Year (CGB) Government of Canada Bond Futures contracts will be modified, as well as the settlement day (or delivery day) for physically-delivered products. The upcoming changes are summarized below:

• Products: 2-Year (CGZ), 5-Year (CGF) and 10-Year (CGB) Government of Canada Bond Futures.
• First Notice Day: Change from the second to the first business day preceding the first business day of the delivery month.
• Last Notice Day: Change from the second to the first business day preceding the last business day of the delivery month.

Impact for listed contracts:

• Product: Physically-delivered Futures and Options (including Government of Canada bond futures)
• Settlement Day (or Delivery Day): Change from a T+2 cycle to a T+1 cycle

The effective date of the required rule changes is expected to be May 24, 2024, after market close.

These changes will be updated in the trading calendar available on the Bourse's website in due time.

The Bourse invites market participants to conduct the necessary adjustments in their systems and with their clients pursuant to the aforementioned changes.

For additional information on the Canadian T+1 settlement cycle initiative, please refer to the T+1 resource page of the CCMA website.

For additional information on this notice, or if you require technical assistance, please contact the Market Operations' desk.

Market Operations
Toll-free: 1-888-693-6366
Local: 514-871-7871
Email: Monitoring@tmx.com

The information contained in this document is for information purposes only and shall not be construed as legally binding. This document is a summary of the product's specifications which are set forth in the Rules of Bourse de Montreal Inc. ("Rules of the Bourse"). While Bourse de Montreal Inc. endeavors to keep this document up to date, it does not guarantee that it is complete or accurate. In the event of discrepancies between the information contained in this document and the Rules of the Bourse, the latter shall prevail. The Rules of the Bourse must be consulted in all cases concerning product's specifications.

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