Stacked white books on rules and regulations

As markets continue to globalize, the Canadian Securities Administrators (CSA) aim to ease access to foreign alternative trading systems that trade fixed income securities.

In a staff notice, the CSA sets outs its new framework for granting exemptions to foreign alternative trading systems and multilateral trading facilities to operate in Canada.

The proposed model for foreign alternative trading systems “would rely on the home jurisdiction for regulation but impose relevant regulatory terms and conditions on the operations of the foreign alternative trading systems within Canada,” the notice said.

The specific terms and conditions that will be imposed on foreign alternative trading systems may vary depending on the specific firm’s operations, the home regime and other factors, according to the notice.

“The terms and conditions focus on maintaining regulatory compliance in its home jurisdiction, providing the CSA with ongoing information about its operations and trading activity in Canada, and ensuring that there is sufficient transparency to participants of the regulatory structure, specifically the substituted compliance model,” the notice said.

For foreign multilateral trading facilities, the CSA said that it will consider allowing them to trade fixed income securities under their existing exemption orders.

The CSA said that its new approach aims to remove “unnecessary regulatory burden to operating in Canada while maintaining high standards of investor protection and market integrity.”