The Canadian Securities Administrators has amended the trading rules to update the best execution obligation, but will leave best execution reporting, trade-through protection, and market access rules for future regulatory efforts.

The proposed amendments were initially published for comment along with other proposed amendments on April 20, 2007 in a joint notice, published along with Market Regulation Services Inc. (now the Investment Industry Regulatory Organization of Canada). The notice also outlined a proposal for a trade-through protection regime and marketplace access.

“Because these three topics are separate and distinct and there are different issues associated with each one, we have decided to deal with trade-through, best execution and access to marketplaces separately and on different timetables,” the CSA says. “At this time, we are proceeding with the proposed rule and policy changes dealing with best execution along with some other changes, including one related to the electronic audit trail provisions. We intend to propose amendments dealing with trade-through protection and rules related to access to marketplaces by issuing separate requests for comment in the coming months.”

The changes proposed by the CSA create a definition of best execution and impose a best execution obligation that requires dealers and advisers to use reasonable efforts to achieve best execution. But the CSA has decided to postpone the implementation of the proposed best execution reporting requirements for marketplaces and dealers for now. It intends to republish these proposed amendments in the future too.

The amendments are due to come into force on September 12.