Canadian Securities Regulators Take Steps to Reduce Risks Associated with Electronic Trading

TORONTO, April 8 /CNW/ - The Canadian Securities Administrators (CSA) today published for comment proposed National Instrument 23-103 Electronic Trading and Direct Electronic Access to Marketplaces. The proposed rule is designed to establish a regulatory framework for electronic trading in Canada.

Under the proposal, marketplace participants will be obligated to establish, maintain and ensure compliance with appropriate controls, policies and procedures, in order to manage the risks associated with various methods of electronic trading, including direct electronic access (DEA), the use of algorithms and high frequency trading. Additionally, the proposed rule enhances the current requirements imposed on marketplaces to ensure they take an active role in managing the risks to fair and orderly trading posed by electronic trading.

"Technological innovations in the Canadian marketplace underscore the importance of ensuring the risks associated with electronic trading are effectively managed and supervised," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "The framework proposed today is an important step in managing these risks and maintaining investor confidence in our markets."

The proposed rule was developed following consultations with marketplaces, marketplace participants and service vendors. It is consistent with international developments in electronic trading, including the International Organization of Securities Commissions'(IOSCO) 2010 report Principles for Direct Electronic Access to Markets. The CSA acknowledge the assistance of staff of the Investment Industry Regulatory Organization of Canada (IIROC) in the development of the proposal.

Investors and market participants are encouraged to submit comments on the proposed rule by July 8, 2011. For more information visit the websites of the CSA members.

The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.


           


SOURCE Ontario Securities Commission

For further information:

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361      
Lorinda Brinton
Alberta Securities Commission
403-297-2665
   
Sylvain Théberge
Autorité des marchés financiers
514-940-2176      
Ken Gracey
British Columbia Securities Commission
604-899-6577
   
Ainsley Cunningham
Manitoba Securities Commission
204-945-4733      
Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745
   
Natalie MacLellan
Nova Scotia Securities Commission
902-424-8586
Jennifer Anderson 
Saskatchewan Financial Services
Commission
306- 798-4160 
Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288      
Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594
   
Graham Lang
Yukon Securities Registry
867-667-5466      
Louis Arki
Nunavut Securities Office
867-975-6587
   
Donn MacDougall
Northwest Territories
Securities Office
867-920-8984


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