Are you mainly buying HSAV.TO or CASH.TO | Page 5 | Investing | Discussion forum

AltaRed said
Do you mean new ISA holdings in other accounts? With an ISA sponsor like ATL backed by CIBC, I wouldn't think you would need to be concerned about CDIC limits.  

OK sounds good. So if I put my 2nd ISA order for ATL now, it gets completed only on Monday, so my interest rate starts from Mon or Tue?

mordko said

So, when OSFI says that HISA ETFs must have 100% liquidity requirement (for banks), they are obviously lying? Is it a conspiracy of sorts?

As a result of these new rules, banks now must classify deposits from HISA ETFs as unsecured wholesale funding with 100% run-off, requiring 100% liquid coverage.

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There's no conspiracy because OSFI requires no such thing. That's just fake drama in the media last year while OSFI was looking into those large deposits some banks had accepted from so-called cash ETF's. The ETF companies suggested, in their disclosure documents, that those deposits were "cash" deposits that could be withdrawn on demand.

OSFI's October 31, 2023 decision letter is to the deposit-taking institutions only. That does not include the ETF's as they are not federally regulated deposit-taking institutions under OSFI's jurisdiction.

The decision was that such deposits from ETF's should be classified in the prescribed wholesale funding category. Any deposit-taking institutions that has not been classifying the deposits in that category had until January 31, 2024 to do so.

There's no requirement to provide 100% liquidity to the ETF's for such deposits. The requirement for that deposit category is that the deposit-taking institution needs to have 100% liquidity coverage (not liquidity) for any deposits that could be withdrawn in the next 30 days that are in that category.

There's no requirement that the deposit-taking institution contractually allow depositors to withdraw any deposits in the category within 30 days.

It would be really unfortunate for the cash ETF and unitholders if too many unitholders wanted to sell and the ETF couldn't pay the market makers on settlement date in T+1 days because a large chunk of its "cash deposits" had a notice period of 15 days or 60 days.

AltaRed said

If your order is put in before the circa 2pm cutoff time today, it will be reported as 'contracted' late tonight or Monday morning, filled late Monday (when you actually pay for it) and possibly not get interest starting until Tuesday. It likely depends on how interest is calculated, e.g. closing daily balance, or minimum daily balance.

I've never been concerned about that sort of thing (a day's interest here or there) so am not certain.  

I got 2 days of interest and 13 units have been added to my total. How does this work? Will the Units Held be always a round figure, because my investment was 44K and now it shows Unit Held 44,013, Unit Price $1.00 and Total investment of value $44,013.46
I can only sell the Units Held and it is 44013. So how can it always be a round figure for Units Held? because interest rate is 5.15%

zgic said

I got 2 days of interest and 13 units have been added to my total. How does this work? Will the Units Held be always a round figure, because my investment was 44K and now it shows Unit Held 44,013, Unit Price $1.00 and Total investment of value $44,013.46
I can only sell the Units Held and it is 44013. So how can it always be a round figure for Units Held? because interest rate is 5.15%  

Re-invested units will always be to 3 decimal places. Some brokerages show these transactions as 2 separate entries, one entry for whole units (13) and another entry for the thousandths of a unit, i.e. 0.460.

Units held will show as 44013.46 in the Holdings section of your account for a value of $44013.46.

As an FYI, it gets a bit more complicated when the thousandths of the re-investment transaction is actually 3 decimal places, e.g. 0.461 or 0.467. In that case the re-investment is rounded to the nearest cent, which in the case of 0.461 units, it is rounded to $0.46 and in the case of 0.467 units, it is rounded to $0.47.