Investing & Trading

What is T+2?

Change to Trade Settlement Date

Effective September 5, 2017, the standard settlement period will be shortened to two business days after the trade date (referred to as T+2) for securities that currently settle in three days.

This is an industry-wide enhancement that affects all equities and mutual fund transactions on both Canadian and U.S. exchanges. Securities that already have a shorter settlement period (e.g. GICs) are not changing.

T+2 refers to the settlement cycle of the trade date (T), plus the number of business days (+2) until the settlement date.

The trade date is when the buy/sell order is executed and the settlement date is when the payment/share delivery is made.

For more information or if you have any questions, please call us at 1.877.742.2900.

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Which securities are affected?

Most Canadian and U.S. securities that currently have a three day settlement cycle (T+3) are changing to a two day cycle (T+2). This includes:

  • Stocks/equities
  • Corporate bonds
  • Long-term government bonds with a remaining term to maturity of more than three years (including Federal, Provincial, and Municipal)
  • Investment funds, including conventional mutual funds, exchange-traded funds (ETFs) and hedge funds
  • Principal-protected notes
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Why is the settlement cycle changing?

A two day settlement cycle (T+2) is becoming the standard for major markets around the world, including the Asia/Pacific region and most European Union countries. Most recently, Australia and New Zealand transitioned to T+2 in March 2016.

Besides aligning with global capital markets, a shorter trade cycle is more efficient and reduces operational and systemic risk.

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How will the change affect my account(s)?

When purchasing a security, you will need to have funds in your account one day earlier. You will also receive funds into your trading account from selling a security one day sooner.

If you are buying on margin or have insufficient funds in your account, interest charges will also start to accrue one day earlier.

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Are all securities changing to a T+2 settlement?

No. Only those securities that currently have a three day (T+3) settlement cycle are being shortened to two days (T+2). Any trades that settle in fewer than three days will continue to do so.

For example, Money Market Funds will continue to settle in one day (T+1) and GICs will continue to settle on the same day.

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Why can’t I get a specific quote?

If you can’t get a particular quote, it might be because that symbol is not in our database. Please contact us at 1.877.742.2900 and we’ll get the symbol set up within 2 business days.

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Do the quotes stream?

The quotes in the Quote Box do not stream but will update on a cycle. We call them snap quotes – meaning a snapshot. Use Get Quote to get a more detailed quote which you can refresh (press F5) or request the quote again.

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Do quotes display real time data?

No. The data displayed is delayed by 15 minutes. For real-time quotes, you’ll need to complete the real-time quote agreement and confirm you’re not a brokerage firm professional* on an annual basis. You can complete the agreement online by logging in and clicking on the “real-time” link on the quote page or in the trading menu footer.

*You’re considered a professional user for real-time data purposes if you’re an Investment Advisor, IR, RR, IA Assistant, Partner, Director, Officer, or other Executive, and any trade desk employee.

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What is the real-time agreement?

The Real-Time agreement is an annual online process for clients to upgrade from 15 minute delayed quotes to real-time quotes. Once you log into your account, click on the Real-time link on the quote page or in the left-hand footer of the trading website. You’ll be asked for information on your identify, your occupation, and then answer several questions to confirm that you are not a brokerage firm professional (Pro)*. Once you have completed the exchange agreements to certify that you are not a Pro you will have instant access to real-time quotes. There is no cost to Non-Pro clients to subscribe to real-time quotes. If you’re considered a Pro for real-time purposes, you’ll need to contact Credential Direct to start a manual agreement process to subscribe at your own cost for real-time quotes.

*a brokerage industry professional is an Investment Advisor, IR, RR, IA Assistant, Partner, Director, Officer, or other Executive, and any trade desk employee.

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How many stocks can I watch in my Watchlist?

Up to 500 stocks and/or indices.

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How do I set the order in which my Watchlist stocks will appear?

The order in which you place them in the Custom window (left to right) is the same order that will display (top to bottom) on your watch list.

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Can I buy/sell stocks directly from a quote?

To buy/sell stocks just click on the Buy or Sell button and you’ll be directed to the Trade > Equities page where you can place an order.

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When can I start trading?

Once your account application has been received and processed by us, we’ll notify you by email that your account is ready for trading. If you did not provide an email address with your application, you must contact us at 1.877.742.2900 for access.

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Why can’t I place a trade?

If you have a new account, it can take up to 5 business days for your cheque to clear. Once your cheque clears, your account will be ready to go and you can start trading!

If you have an existing account, it may be that the account is restricted due to returned mail. Visit Account Settings to see if your address is up to date. If it needs updating, you can change it there and we’ll update your account within 2 business days. If you’re unable to place a trade because of a different situation, give us a call and we’ll look into it: 1.877.742.2900

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What types of securities can I purchase?

Your Credential Direct trading account gives you the flexibility to buy stocks, bonds, mutual funds, options, GICs and other money market instruments. We don’t offer commodities or futures trading at this time.

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Can I trade after-hours or pre-market?

Currently, we don’t offer access to these markets.

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When should I pay for my first trade?

Your first trade must be covered by sufficient funds or security in your account. If you have entered an Electronic Funds Transfer, that is perfectly acceptable even though the money won’t physically come into your trading account for 1 to 2 business days.

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Can I use my credit card to pay for a trade?

No, Credential Direct does not accept credit card payments. However, you could do a cash advance from your credit card, deposit the cash into your chequing account and then process an EFT, or a bill payment, into your Credential Direct trading account.

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How can I confirm my order was submitted?

After you have entered your order online you will get a confirmation screen with an order reference number. We suggest you print this screen. You can then go to Trade > Pending Orders to view the status of that order or to change the order; or, go to Accounts > Account History to see the historical transactions in your account if the order is filled.

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How do I know my trade is completed?

You can view active orders by going to Trade > Pending Orders to view the status of that order or to Accounts > Account History to see the historical transactions in your account. You can also phone Credential Direct at 1 877.742.2900 to speak with an Investment Representative. A paper confirmation of a completed trade will be mailed to you the day after the order is filled. You can also check your account statement which is mailed to you after the end of the month, or available online at Accounts > Online Statements when you have a transaction in your account.

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What is an All or None (AON) Order?

AON in is a special terms order available only on U.S. Markets that restricts your trade to be transacted only if all the shares can be traded at one time. This order is handled manually and will not reflect in the bid/ask quoted from the exchange.

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I placed an All or None (AON) order and the stock traded at my price, why didn’t it get filled?

Because an AON is a manually handled restricted order it may be more difficult to fill. The specific number of shares you have indicated must be available at that price for your order to be executable. You may see trades happening at your price but the quantities may not be sufficient to fill your order. Unrestricted orders have priority over restricted orders.

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How do I take the All or None (AON) restriction off my order?

If you’ve placed an AON order on your trade and you want to remove it, you must cancel the AON order and enter a new order without the AON restriction on it. Be aware that your cancellation is subject to prior fill.

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What is a STOP Order?

A sell Stop Order is a special terms order that restricts your sell order to only be traded if the stock price drops down to a limit you specify. If you’re placing a buy order as a Stop Order, you would place the limit price above the current price so that you only buy once the stock rises to a certain price. Ensure you select “Special Terms” on your order.

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What is the “On Stop with Limit” checkbox for?

Your stop order must have the number of shares, the limit price that will be the ‘trigger’ and an On Stop with Limit price of what the lowest price you are willing to accept for your sell order (or the maximum price if it is a buy order).

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I want to take the Stop Order restriction off of my order, how do I do it?

If you’ve placed a Stop Order on your trade and you want to remove it, you must cancel the Stop Order and enter a new order without the Stop Order restriction on it. Be aware that your cancellation is subject to prior fill.

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Can I buy an odd number of shares? Odd lot orders?

Yes you can trade less than an even board lot, but trading standard units is recommended as priority is given on the exchanges to even board lot orders.

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I placed a mutual fund order online, why isn’t it showing in my account?

Mutual Fund orders can be placed online but the processing of the order is handled more manually than stock trading. The cut-off time for same day pricing of most mutual funds is 1:00pm Pacific Standard Time. Allow 1 business day after your request for the order to reflect in your account. Be aware that some mutual funds only price once per week, once per month, or once quarterly. Contact the fund company for details.

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Can your investment representatives tell me what to buy?

Accounts at Credential Direct are entirely self-directed, so you are your own broker. We do, however, provide assistance on how to use our trading platform and tools research.

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What is the difference between market value and book value?

Market value is the current estimated value of your holdings (i.e. if you were to sell them today). Book value is your cost of purchasing the holdings in your account. Unrealized Gain/Loss is the difference between what you paid for a holding and approximately what you could sell it for, given current market conditions.

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What does Buying Power refer to?

Buying Power applies to margin accounts and represents the dollar amount the account owner could borrow in order to make a further purchase on margin. Buying Power is your cash balance plus the loan value of any marginable securities in your account. Buying Power is updated each time you visit the page. Cash and registered accounts will show a Buying Power equal to their trade cash balance.

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What’s the difference between Trade Cash and Settlement Cash?

You technically do not pay for a purchase until the settlement day; and, you do not actually receive money from a sale until settlement. The Trade Cash value is a forward looking value of the amount of money which will be in your account when your trade has been settled but represents what you can use now to make another trade. The Settlement Cash is the money in your account that has already settled and represents what is available to be taken out of the account.

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What’s the difference between the Market Value and the Equity value?

Market Value shows the value of the securities in your account, updated every 20 minutes. Equity value is the Market Value plus the cash in the account.

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