Final Phases of Client Identifier Requirements Take Effect

TORONTO, July 28, 2021 /CNW/ - The final phases of amendments to the Investment Industry Regulatory Organization of Canada's (IIROC) rules regarding the use of Client Identifiers came into effect on July 26, 2021.

The amendments require client identifiers and/or designations on each order for a listed equity security sent on behalf of a client to a marketplace. The requirements have been in effect for Canadian corporate and government debt securities since October 18, 2019.

"The expansion of mandatory client identifiers to Canada's equity as well as debt markets now provides for a far more comprehensive and timely view of market activity, enhancing our capability to perform both market monitoring and investigations. We can better protect investors and support healthy capital markets," said IIROC's President and CEO, Andrew Kriegler.

The amendments to the Universal Market Integrity Rules and Dealer Member Rules require client identifiers either in the form of Legal Entity Identifiers (LEI), generally for clients treated as institutional accounts, or account numbers for most retail clients. The amendments are in line with other global jurisdictions that have also required client identifiers to improve risk management, surveillance and investigatory capabilities.

IIROC conducted extensive consultation, including two public comment periods to ensure the amendments we are making achieve our regulatory objectives with the least amount of market impact.

The addition of client identifiers to IIROC's trading data will improve IIROC's efficiency in performing a range of regulatory functions, including conducting market monitoring, investigations and data analysis.  The enhanced data will also enable us to better support the Canadian Securities Administrators in carrying out their public interest mandate.

"IIROC is committed to continuing to enhance its mandate of market integrity and investor protection.  With the implementation of our new state-of-the art surveillance system in 2019 and mandatory client identifiers we are well-positioned to meet the continuously evolving trading and investing environment," said IIROC's Senior Vice-President of Market Regulation, Victoria Pinnington. "We thank the industry for the time and resources they committed to this very important enhancement to market integrity."

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About IIROC:

IIROC is the pan-Canadian self-regulatory organization that 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 175 Canadian investment dealer firms of varying sizes and business models, and their more than 30,000 registered employees. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.         

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

Sean Hamilton, Director, Public Affairs and Member Education Services, 647-308-6497, [email protected]

Related Links

www.iiroc.ca