Planned proposal addresses Canadian market competitiveness
TORONTO, Dec. 15, 2014 /CNW/ - The Investment Industry Regulatory Organization of Canada today published guidance and a technical notice to clarify the requirements for investment dealers when orders in Canadian-listed securities are executed away from Canadian markets, as an important step in IIROC's approach to addressing concerns about the routing of orders to the U.S.
Today's guidance reaffirms the existing IIROC requirement, under Universal Market Integrity Rules (UMIR), for dealers who send orders for execution on a market outside of Canada to ensure that these trades are conducted on foreign organized regulated markets (FORMs). FORMs, as defined in UMIR, have substantially the same regulatory monitoring and dissemination of data to the public as would be present if the trade had been conducted on a marketplace in Canada.
Further work is underway with the Canadian Securities Administrators (CSA) to foster constructive dialogue on the issue of Canadian order flow to the U.S. In January, IIROC will publish for comment an additional proposal that aims to support price discovery on Canadian public markets, foster competitiveness and ensure consistent application of market integrity rules.
Dealers who have questions about the guidance on FORMs are encouraged to contact IIROC for assistance.
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
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