The settlement date for Government of Canada bonds follows theT+1 rule, meaning settlement occursone business day after the transaction date. This rule ensures efficient clearing and settlement processes in the government bond market.
B. Same day the transaction takes place: While this applies to some instruments in rare cases (e.g., cash transactions), it is not the standard for Government of Canada bonds.
C. Two business days after the transaction (T+2): This applies to equity trades and corporate bonds but not government bonds.
D. Three business days after the transaction (T+3): This is an outdated settlement timeline.
[Reference:CSC Volume 1, Chapter 7, "Bond Market Trading – Government of Canada Bonds Settlement" clearly defines the T+1 settlement standard for government bonds., , ]
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