IIROC Announces Extensive Consultation on Client Identifiers

Regulator requests initial comments and proposes working group

TORONTO, May 17, 2017 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) today announced an extensive consultation on ways to expand the use of client identifiers with the goal of enhancing market integrity, protecting investors and addressing electronic trading risks while minimizing impact on the investment industry.

IIROC's consultation will include both a minimum of two rounds of public comment on the proposed rule amendments and the formation of a stakeholder working group to provide further input and to discuss alternative approaches.

The initial proposal published today would require client identifiers on each order sent to a marketplace and each reportable trade in a debt security. Dealers would need to provide a Legal Entity Identifier (LEI) for eligible clients (typically institutional clients such as pension funds) or an account number for clients not eligible to obtain an LEI (typically retail clients).

The added transparency will enhance IIROC and other Canadian regulators' ability to monitor for and protect investors from potential market abuses and aligns with similar initiatives in Europe and the U.S. Regulators in other global jurisdictions have required client identifiers to improve risk management, surveillance and investigatory capabilities.

"We have committed to an extensive consultation so we can achieve the regulatory objectives of the proposed changes in a cost effective manner and with the least amount of impact," said Victoria Pinnington, IIROC Senior Vice-President, Market Regulation.

Comments are due by November 13, 2017. Stakeholders interested in participating on the consultation committee should contact tlam@iiroc.ca by June 19, 2017.

IIROC will publish a subsequent proposal for additional comment at a future date before implementing any proposed changes.

IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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 debt and equity marketplaces.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information: Paul Howard, Director, Communications & Public Affairs, 416 646-7279, phoward@iiroc.ca; Karen Archer, Manager, Media Relations, 416 865-3046, karcher@iiroc.ca


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