Investment dealer firms registered the Investment Industry Regulatory Organization of Canada will have to report debt security transactions next year, the self-regulatory organization (SRO) announced this week.
Under the newly published Debt Transaction Reporting Rule, dealer members will have to report on a post-trade basis all of their executed debt security transactions as well as those made by affiliates that are Government Securities Distributers to IIROC. Firms will have to make the report one day following the transaction. The new rule will take effect in November 2015.
“We recognize that fixed income plays an important role in helping investors achieve their financial goals,” said Susan Wolburgh Jenah, IIROC’s outgoing president and CEO, in a statement. “We have taken this significant step to enhance our timely and effective regulatory oversight of trading in this asset class.”
The collection and analysis of the debt trade reports will be processed by a new Market Trade Reporting System (MTRS 2.0), which will run in parallel to the current MTRS for a period of time.
IIROC is also collaborating with an industry working group in the development of a proposed cost-recovery fee model to cover the system’s operation and maintenance costs. The new model will by published for comment by the end of 2014.
The reporting framework has been approved by the Canadian Securities Administrators (CSA).