TORONTO, Jan. 10, 2013 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) today published the results of its review of the Canadian Dealer Offered Rate (CDOR).
"IIROC initiated this policy review of current practices among CDOR
survey participants in 2012 in light of global developments relating to
survey-based reference rates and to strengthen the oversight of CDOR
going forward," said Susan Wolburgh Jenah, IIROC President and Chief
IIROC's recommendations regarding key areas for enhancement to
strengthen the integrity and confidence in CDOR include:
specific documented criteria for participation in the rate setting
more explicit documentation regarding the definition, calculation
methodology and transparency of CDOR; and
documented regulatory expectations for participants' supervision of
rate-setting activity and controls to prevent potential manipulation.
The Bank of Canada, federal Department of Finance, and other Canadian
regulators have agreed to consider further, in conjunction with IIROC,
the implications for CDOR of the issues identified in IIROC's review as
well as relevant issues identified in ongoing international work in
relation to the use and regulation of reference rates.
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