An independent and neutral trading regulator is an absolute requirement as Canada prepares for competition in the trading of securities, said Tom Atkinson, the new president and CEO of Market Regulation Services Inc. in a speech today to members of the Investment Dealers Association.

As of December 1, Canada is open to competition in the form of Alternative Trading Systems, which will compete with the existing stock exchanges in the trading of securities. The regulation of securities trading was previously exercised exclusively by the stock exchanges themselves and a neutral body is required for the new competitive environment. MRS is owned jointly by the TSE and the IDA to oversee the regulation of market participants and it has regulatory jurisdiction over the trading activities of all participants that buy or sell securities over exchanges, Quotation and Trade Reporting Systems and ATS.

The 11-member board includes two representatives each from the TSE and IDA, a member jointly appointed by the TSE and IDA to represent the junior markets and five independent members, including one specifically advising on ATS trends and concerns. Atkinson will also serve on the board.

The other members are: Paul Bates, president & CEO, Charles Schwab Canada Co.; Luc Bertrand, president & CEO, Montreal Exchange; Ian Brown, senior managing director, Raymond James Ltd.; Charles Caty, past-president & CEO, IDA; Eric Kirzner, professor, Joseph L. Rotman School of Management, University of Toronto; Mark Madoff, director of listed trading, Bernard L. Madoff Investment Securities LLC; Bill Moriarty, managing director, RBC Dominion Securities Inc.; Joe Oliver, president & CEO, IDA; Kathryn Perry, director of Alberta Revenue; and, Barb Stymiest, president & CEO of the TSE.

MRS says it will not show preference for any one marketplace or jurisdiction when administering, interpreting and enforcing common trading rules on the TSE, CDNX, QTRS, ATS and any other market trading systems that retain its services.

“Our role is not simply to police trading activities,” said Atkinson. “We want to help raise standards and improve securities trading practices to ensure that Canadian markets work as efficiently and fairly as possible.”