CCMA T+2 UPDATE KEITH EVANS EXECUTIVE DIRECTOR – CCMA FAS UPDATE – TORONTO BOARD OF TRADE FEBRUARY 2016

AGENDA What’s the latest on T+2? Steering Committee & Working Group Update UST2 Update What’s Next? Questions?

WHAT’S THE LATEST ON T+2? T+2 Issue identification is complete CCMA Website Redesign – Feb 2016 T+2 Industry Event – April 2016 Spain delayed T+2 Implementation with no new date set Australia scheduled to transition March 7, 2016 Canadian financial industry is very optimistic

STEERING COMMITTEE UPDATE Meets at least monthly Excellent industry participation and support No show stoppers identified to date Vendors and Utilities have all indicated no issues Three Primary Issues NI Testing Readiness

LEGAL AND REGULATORY WG Meets at least monthly Completed the identification of organizations affected by T+2 Identified Rules that need review Identified 62 entities plus instruments to be resolved Nothing major at this time

COMMUNICATION & EDUCATION WG Redevelop/re-launch CCMA website Connect with associations and vendors for broad T+2 information dissemination Complete media launch of T+2 and upcoming event Host half-day T+2 event Regular newsletters, website updates, webinars, presentations Half-day “7th inning stretch” event – status, readiness survey, testing Issue final implementation report

OPERATIONS WG Meets at least monthly Completed the identification of issues to be addressed Identified 25 issues – 5 High Priority Issues Industry wide testing Corporate Actions International trade allocations Holiday Processing Asset List affect by T+2 Sub Working Group to deal with Mutual Funds a little behind…..but ok There will be changes required….but nothing major Vendors are included

UST2 UPDATE

Implementation Plan Was issued on time - December 18, page document High-Level Industry Test Plan Is due to be issued in early February 2016 Three streams 1 Trade Execution 2 Trade Confirmation 3 Asset Servicing Scripted vs Open Mandatory vs Voluntary There does not appear to be consensus

WHAT’S NEXT? UST2 to issue high level test plan – Feb 2016 UST2 to issue implementation date – Feb 2016 Start Canadian issue resolution process Monitor the Australian implementation on March 7, 2016 Populate the redesigned CCMA website Steering Committee and Working Groups to meet regularly

QUESTIONS?