Trade matching and settlement in accordance with National Instrument 24-101 – Institutional Trade Matching and Settlement (“NI 24-101”) will also be maintained.
TMWG will obtain a trade matching statement from each trade matching partner before opening a DAP/RAP account and before giving an order to that dealer to execute a DAP/RAP trade. DAP/RAP trades are trades for a delivery-against-payment or receipt-against-payment (or similarly named) account of an institutional investor that are generally settled through a separate custodian on the books of a clearing agency.
TMWG will endeavour to supply to the trade matching partner information regarding the DAP/RAP trade as soon as practical after the trade is executed but no later than the end of the next day on which the trade is executed. In certain instances where circumstances warrant, the information will be delivered no later than noon on the next business day following the day the trade is executed as outlined in NI 24-101.
TMWG will measure and monitor the trade matching percentages of DAP/RAP trades with its trade matching partners. This information will be obtained from the custodian on a monthly and quarterly basis. Upon reception of the information from the custodian, TMWG will review the trade matching reports of the DAP/RAP accounts.
TMWG will deliver Form 24-101F1, a quarterly exception report, to the regulator when less than 90% of TMWG’s DAP/RAP trades are matched by noon of the business day following the day on which a trade is executed.
TMWG will maintain on-premise files for all trade matching partners including all pertinent information such as NI 24-101 Trade Matching and Settlement Trade Matching agreements. TMWG will maintain on file all monthly and quarterly DAP/RAP NI 24-101 information as provided by the custodian.