New initiative will create a collaborative market-driven approach to risk rating securities
TORONTO, April 1, 2015 /CNW/ - TMX Group today announced the introduction of TMX Security Risk Ratings, a new reference data product designed to support Canadian investment firms in conducting client suitability assessments, an Investment Industry Regulatory Organization of Canada (IIROC) requirement.
In today's increasingly fast-paced and complex marketplace, the Canadian investment community faces the escalating challenge of addressing large volumes of client suitability assessments. Expected to launch later this year, TMX Security Risk Ratings will provide an independent and standardized approach to client suitability. The service will include the most widely-held Canadian and U.S. securities, each with a unique identifier and risk rating, ready to use as a reference point or within automated compliance screening programs.
"TMX Security Risk Ratings is designed to help our customers deal confidently and consistently with client suitability assessments, while improving the quality of service they offer to their clients," said Jean Desgagné, President and Chief Executive Officer of The Canadian Depository for Securities Limited (CDS). "We are excited at the prospect of bringing industry leaders and subject matter experts together to help us deliver an independent solution with important and wide-reaching benefits to the investment industry."
TMX Security Risk Ratings is being developed for the Canadian investment community by CDS and will leverage an independent advisory board from across capital markets, who will contribute thought leadership to the methodologies at the core of TMX Security Risk Ratings.
Advisory Board Chair
TMX Group is also pleased to announce Barbara Amsden as Chair of the TMX Security Risk Ratings Methodology Advisory Board. Ms. Amsden has more than 20 years of demonstrated success in the Canadian financial and investment industry and comes to the role after serving as Managing Director of the Investment Industry Association of Canada. She will draw on her wealth of experience and wide range of roles within the industry to effectively lead the inaugural Board and oversee the principles of its charter.
"With the complexity and sheer volume of securities in capital markets, and more demanding regulatory requirements, the difficult role of assessing risk has become an even bigger challenge," said Barbara Amsden, inaugural Chair of TMX Security Risk Ratings. "I look forward to working together with my peers in the industry to advise on standards that work to enable firms to better serve investors across the country."
For more information about TMX Security Risk Ratings, please visit our site, www.tmxsrr.com.
About TMX Group (TSX:X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha Group, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montréal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
SOURCE TMX Group Inc.
For further information: Shane Quinn, Senior Manager, Communications and Public Affairs, TMX Group, 416-947-4609, [email protected]