IIROC proposes rule changes to address electronic trading risks

TORONTO, June 28, 2012 /CNW/ - The Investment Industry Regulatory Organization of Canada has issued a package of proposed rule changes to align market trading rules with the implementation of the Canadian Securities Administrators (CSA) N1 23-103 Electronic Trading.

IIROC's proposed amendments to the Universal Market Integrity Rules (UMIR) introduce specific supervision and gatekeeper obligations for IIROC Dealer Members in order to help mitigate the risks related to electronic trading, increasing levels of speed and the automation of trading.

"These proposed changes to IIROC rules complement the CSA's establishment of a regulatory framework for the oversight and management of risks associated with the use of electronic trading on Canadian marketplaces," said Susan Wolburgh Jenah, IIROC's President and Chief Executive Officer.

To support IIROC dealer members in their implementation and compliance efforts, IIROC is also issuing for comment proposed guidance on the amendments. The content, much of which was contained in earlier Notices, consolidates and further clarifies IIROC's expectations for supervision of electronic trading and the use of automated order systems in particular.

The CSA announced today it is implementing NI 23-103and the news release is available on its website.

IIROC's proposed amendments Provisions Respecting Electronic Trading and guidance  Proposed Guidance Respecting Electronic Trading were issued today for a 90-day comment period and are available on IIROC's newly redesigned website.

IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

Lucy Becker
Vice President, Public Affairs
416.943.5870
[email protected]