FAQs – Shift to T+1 settlement cycle – Mexico
In this section, you will find answers to the following questions.
Please see the separate FAQs for further information on the shift to the T+1 settlement cycle in Canada and the U.S.A.
- What will be the instruments in scope?
- What will be the impact of T+1 on settlement?
- What will be the first T+1 trade date?
- What will be the last T+2 trade date?
- Will there be a change to the CBL settlement deadline?
- Will there be a change to the CBL provisioning period?
- Are there any changes planned to Swift MT541/MT543 formatting?
- Will there be any impact on asset servicing?
1. What will be the instruments in scope?
The scope of the move to T+1 settlement comprises Mexican equities and those listed in the international quotation system (SIC), which both consider the United States of America and Canada as their principal markets.
2. What will be the impact of T+1 on settlement?
The implementation of the T+1 settlement cycle for the Mexican market is not as complex as it is for the U.S. market. The settlement process in Mexico requires allocation to be executed by local brokers on T+0 and this process is not expected to change. Affirmation is not required in the market; pre-matching is a market practice, however, it is not mandatory.
Market cut-offs will not change within the day of settlement, the only change is that the same cut-off will be shortened by 24 hours from T+2 to T+1.
3. What will be the first T+1 trade date?
The Mexican market is open for business on Monday, 27 May 2024 (first trade date for T+1 settlement).
Friday, | Saturday, | Sunday, | Monday, | Tuesday, | Wednesday, | Thursday, |
Last T+2 Trade Date | Conversion Weekend | Conversion Weekend | First T+1 Trade Date | Double Settlement Date | Trade and settle T+1 | Trade and settle T+1 |
4. What will be the last T+2 trade date?
Last trade date for a T+2 settlement will be Friday, 24 May 2024.
All trades concluded on this business day will have the settlement date Tuesday, 28 May 2024.
5. Will there be a change to the CBL settlement deadline?
Clearstream Banking S.A. (CBL) does not anticipate any change to its current settlement deadline. Please refer to Settlement times – Mexico for details.
6. Will there be a change to the CBL provisioning period?
Clearstream Banking S.A. (CBL) does not anticipate any change to its current provisioning period. Please refer to Settlement times – Mexico for details.
7. Are there any changes planned to Swift MT541/MT543 formatting?
Clearstream Banking S.A. (CBL) does not anticipate any changes to the MT541/MT543 Swift message formats. Please refer to Instruction specifications - Xact via Swift and Xact File Transfer - Mexico for details.
8. Will there be any impact on asset servicing?
The main change in asset servicing impacts the ex-date: Within the current T+2 settlement cycle, a dividend typically has the ex-date one day before the record date. The ex-date calculation for regular distribution will shift from one trading day prior to the record date in a T+2 settlement cycle to equal the record date in a T+1 settlement cycle. Entitlements are based on traded positions as of record date.