Improved surveillance to enhance market integrity and investor
TORONTO, Feb. 20, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today issued for comment a proposed rule and a plan to create a system for timely surveillance and enhanced
oversight of Canadian debt market activity.
In recent years, trading in debt securities has increased
significantly. In 2012, the value of secondary domestic bond market
trading was approximately $10 trillion. Money market activity
accounted for an additional $6.7 trillion. In comparison, equity
markets represented approximately $1.9 trillion in value during 2012.
"We are moving forward with these important initiatives because we
recognize that robust regulatory supervision and oversight of the debt
markets are critical to enhancing market integrity and investor
confidence," said IIROC President and Chief Executive Officer Susan
IIROC's proposed rule and plan to replace the existing Market Trade
Reporting System (MTRS) will facilitate the collection of detailed
transaction data related to all debt trading by Canadian dealers and
their affiliates. As a result, IIROC will be better able to monitor
and enforce compliance with existing investor protection and market
integrity rules. MTRS is a co-operative effort between IIROC and the
Bank of Canada.
IIROC's compliance program requires that IIROC-regulated firms conduct
appropriate levels of internal supervision of debt securities trading.
In 2011, IIROC introduced a Fair Pricing Rule requiring IIROC-regulated
firms to ensure clients received fair prices on debt transactions.
Other IIROC investor protection and market integrity rules applicable
to the debt market include those addressing manipulation, client
priority and suitability.
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 employees 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
For further information:
Vice President, Public Affairs