The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) are seeking comment on possible reforms to daily insider reports, amid concerns that the reports may be hurting large shareholders.
The TSX and TSXV on Tuesday published a paper seeking feedback on the insider trading summary reports that they are currently required to publish at the end of each trading day.
"The key concern is that the reports provide information that others can use and trade on, thereby negatively impacting subsequent trading by large securityholders and potentially increasing market impact costs," the exchanges said in a statement.
The exchanges began issuing the daily insider reports following decisions from the Ontario Securities Commission (OSC), the British Columbia Securities Commission (BCSC), and the Alberta Securities Commission (ASC) in 2006, which stemmed from an initiative that sought to combat illegal insider trading through enhanced disclosure of insider activity.
The exchanges are now reconsidering whether these reports are still relevant, and whether there are negative consequences to publishing them that would justify changing, or removing, the requirement to provide them.
"The feedback received will inform the appropriate course of action, which may include requesting that the relevant securities regulatory authorities amend or revoke the decisions," the exchanges say.
Comments are due by Jan. 31, 2017.