Maintains fair and orderly markets
TORONTO, Dec. 11, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today published for comment proposed guidance to expand the single-stock circuit breaker program (SSCBs) to further
mitigate market volatility.
The proposed guidance would:
expand the list of securities subject to SSCBs to include all securities
that are considered "actively traded"
extend the times when SSCBs are active to include the entire regular
trading day; and
allow more than one SSCB to trigger for a particular security during the
same trading day.
"We are committed to maintaining fair and orderly markets and the
expansion of single-stock circuit breakers, together with other
complementary measures, enhances market integrity and fosters investor
confidence," said Susan Wolburgh Jenah, IIROC's President and Chief
Under the proposal, IIROC would produce a report, available on its
website, listing all securities subject to SSCBs which would be updated
monthly once the guidance is finalized.
The introduction and expansion of SSCBs is part of a series of IIROC
reforms implemented since the May 6th 2010 "Flash Crash". They include:
controls at the participant level introduced through the electronic
trading rules (March 2013) and pending implementation of third-party
marketplace access rules (March 2014);
an upcoming proposal for the introduction of marketplace thresholds;
IIROC's February 2013 update to market-wide circuit breakers; and
IIROC's August 2012 clarification of its policies and procedures on
erroneous and unreasonable trades.
The proposed guidance, when finalized, would replace prior guidance
published February 2012 in which IIROC introduced SSCBs on an "initial
implementation phase" basis. The proposal is out for comment until
March 10, 2014.
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
IIROC sets high quality regulatory and investment industry standards,
protects investors and strengthens market integrity while maintaining
efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employee and through
setting and enforcing market integrity rules regarding trading activity
on Canadian equity marketplaces.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
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