News Releases
Canadian Securities Regulators Take Steps to Reduce Risks Associated with Electronic Trading
Apr 08, 2011
The Canadian Securities Administrators (CSA) today published for comment proposed National Instrument 23-103 Electronic Trading and Direct Electronic Access to Marketplaces. The proposed rule is designed to establish a regulatory framework for electronic trading in Canada.
Under the proposal, marketplace participants will be obligated to establish, maintain and ensure compliance with appropriate controls, policies and procedures, in order to manage the risks associated with various methods of electronic trading, including direct electronic access (DEA), the use of algorithms and high frequency trading. Additionally, the proposed rule enhances the current requirements imposed on marketplaces to ensure they take an active role in managing the risks to fair and orderly trading posed by electronic trading.
“Technological innovations in the Canadian marketplace underscore the importance of ensuring the risks associated with electronic trading are effectively managed and supervised,” said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. “The framework proposed today is an important step in managing these risks and maintaining investor confidence in our markets.”
The proposed rule was developed following consultations with marketplaces, marketplace participants and service vendors. It is consistent with international developments in electronic trading, including the International Organization of Securities Commissions’(IOSCO) 2010 report Principles for Direct Electronic Access to Markets. The CSA acknowledge the assistance of staff of the Investment Industry Regulatory Organization of Canada (IIROC) in the development of the proposal.
Investors and market participants are encouraged to submit comments on the proposed rule by July 8, 2011. For more information visit the websites of the CSA members.
The CSA, the council of the securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.
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For more information:
| Carolyn Shaw-Rimmington Ontario Securities Commission 416-593-2361 |
Lorinda Brinton Alberta Securities Commission 403-297-2665 |
| Sylvain Théberge Autorité des marchés financiers 514-940-2176 |
Ken Gracey British Columbia Securities Commission 604-899-6577 |
| Ainsley Cunningham Manitoba Securities Commission 204-945-4733 |
Wendy Connors-Beckett New Brunswick Securities Commission 506-643-7745 |
| Natalie MacLellan Nova Scotia Securities Commission 902-424-8586 |
Jennifer Anderson Saskatchewan Financial Services Commission 306- 798-4160 |
| Janice Callbeck PEI Securities Office Office of the Attorney General 902-368-6288 |
Doug Connolly Financial Services Regulation Div. Newfoundland and Labrador 709-729-2594 |
| Graham Lang Yukon Securities Registry 867-667-5466 |
Louis Arki Nunavut Securities Office 867-975-6587 |
| Donn MacDougall Northwest Territories Securities Office 867-920-8984 |