IIROC publishes best execution survey results

Adapting to market structure changes

TORONTO, March 28, 2014 /CNW/ - IIROC published today results of a survey of all Dealer Members that execute secondary market trades in listed securities on behalf of clients. The survey of 143 IIROC-regulated firms was conducted to gauge the practices they use to achieve best execution.

Dealers are required to have policies and procedures in place, and to make reasonable efforts to achieve best execution when acting for a client.

"Changes in technology and market structure have increased order handling complexity. The multiple-marketplace environment has also broadened the range of practices that can be used to achieve best execution," said Wendy Rudd, IIROC Senior Vice President, Market Regulation and Policy. "These factors, combined with requests from Dealers for additional guidance in this area, prompted IIROC to undertake the survey."

The survey was conducted online between December 2012 and February 2013, and focused on key areas, including marketplace access, smart order routers, order handling, treatment of marketplace fees and rebates, and disclosure to clients of best execution policies and procedures.

Responses to the survey will help inform the development of rules and/or guidance proposals to assist IIROC Dealer Members in complying with best execution requirements.

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

Karen Archer, Senior Media & Public Affairs Specialist, 416 865-3046, [email protected]; June Yee, Manager, Corporate Communications, 416 943-6921 [email protected]