Reminder - Industry change to T+1 settlement cycle

Pursuant to changes within the North American financial industry as well as Montreal Exchange Notice A24-006 and Circular 052-24, effective May 24, 2024, after market close, the settlement cycle for equities and bonds will be shortened from "Trade Date plus 2 days" (T+2) to "Trade Date plus 1 day" (T+1).

This implies that a deliverable will be delivered one day after an Equity or ETF option exercise as opposed to two days. Additionally, the deliverable for Government of Canada Bond Futures will be delivered one day after the short counterparty advises CDCC of their intention to make delivery.

Further, as highlighted in the aforementioned documents, the following changes will apply as of the effective date:

Applicable to the 2-Year (CGZ), 5-Year (CGF) and 10-Year (CGB) Government of Canada Bond Futures¹:

• The "Last Notice Day" and "First Notice Day" for advising CDCC of the short Counterparties' intention to make delivery will also be pushed forward by one day to reflect the T+1 settlement cycle. The last notice day will be the first business day preceding the last business day of the delivery month rather than the second business day preceding the last business day of the delivery month. The first notice day will be the first business day preceding the first business day of the delivery month rather than the second business day preceding the first business day of the delivery month. These changes will apply to the June 2024 contracts and all subsequent expiries and are summarized below:

¹ Not applicable to the 30-Year (LGB) Government of Canada Bond Futures, as the only "notice day" will remain on the last trading day.

Applicable to Canadian Share Futures:

• The Final settlement day will be pushed forward by one day to reflect the T+1 cycle. The final settlement day will be the first business day after the last Trading day rather than the second business day after the last Trading day. This change will apply to the June 2024 contract and all subsequent expiries:

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 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.

© 2024 Bourse de Montréal Inc. 1800 - 1190 Avenue des Canadiens-de-Montréal P.O. Box 37 Montréal (Québec) H3B 0G7, Canada