Canadian Securities Regulators Seek Input on Proposed Trade-through Protection Rule

    TORONTO, Oct. 17 /CNW/ - The Canadian Securities Administrators (CSA)
today published amendments to National Instrument 21-101 Marketplace Operation
(NI 21-101) and National Instrument 23-101 Trading Rules (NI 23-101) that
would introduce a trade-through protection rule.
    Trade-through protection ensures that better-priced orders are executed
first. The proposed rule would require each marketplace to establish, maintain
and enforce written policies and procedures that are designed to prevent
trade-throughs. Trade-through protection is currently addressed as part of the
best price obligation imposed by the Investment Industry Regulatory
Organization of Canada (IIROC).
    "Trade-through protection is important to maintain investor confidence in
the fairness and efficiency of our market," said Jean St-Gelais, Chair of the
CSA and President & Chief Executive Officer of the Autorité des marchés
financiers (Québec). "At this stage, having sought input on a trade-through
protection framework and its impact on the Canadian market, we have developed
a proposed rule that will ultimately benefit investors."
    Throughout the development of the proposed rule, the CSA has sought
feedback from Canadian market participants, the majority of whom voiced their
support for trade-through protection. The proposed rule follows the
publication of a CSA Discussion Paper 23-403 Market Structure Developments and
Trade-through Obligations, as well as a public forum in 2005, and a Joint
Notice with Market Regulation Services Inc. (now IIROC) on Trade-Through, Best
Execution and Access to Marketplaces in April 2007.
    The CSA invites interested stakeholders to provide input on the
amendments and responses to the various questions raised in the CSA Notice.
National Instrument 21-101 Marketplace Operation, National Instrument 23-101
Trading Rules, and related companion policies are available on various CSA
members' websites. The comment period is open until January 15, 2009.
    The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the Canadian
capital markets.

For further information:

For further information: Laurie Gillett, Ontario Securities Commission,
(416) 595-8913; Sylvain Théberge, Autorité des marchés financiers, (514)
940-2176; Ken Gracey, British Columbia Securities Commission, (604) 899-6577;
Mark Dickey, Alberta Securities Commission, (403) 297-4481; Marc Gallant,
Department of the Attorney General, Prince Edward Island, (902) 368-4552; Fred
Pretorius, Yukon Securities Registry, (867)667-5225; Donn MacDougall,
Securities Registry, Northwest Territories, (867) 920-8984; Ainsley
Cunningham, Manitoba Securities Commission, (204) 945-4733; Wendy
Connors-Beckett, New Brunswick Securities Commission, (506) 643-7745; Nathalie
MacLellan, Nova Scotia Securities Commission, (902) 424-8586; Barbara
Shourounis, Saskatchewan Financial Services Commission, (306) 787-5842; Doug
Connolly, Financial Services Regulation Div. Newfoundland and Labrador, (709)
729-2594; Louis Arki, Nunavut Securities Registry, (867) 975-6587

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