In the wake of large losses suffered by U.S. trading firm Knight Capital Group, Inc. due to a software glitch, Canadian regulators are giving firms more time to provide their input on proposed volatility controls for the Canadian market.
The Investment Industry Regulatory Organization of Canada (IIROC) announced Monday that it is extending the comment period on proposals it made earlier this year for setting price and volume thresholds for Canadian markets. The original comment period expired on August 8.
IIROC said that firms have asked for more time, “in light of recent volatility events in the United States…” so that they can “address these events in their submissions.” As a result it is extending the deadline to September 10.
Back in May, it issued a notice requesting comment on possible approaches to establishing price and volume thresholds to accompany various other regulatory initiatives aimed at controlling short term, unexplained price volatility. This initial consultation is the first step in a process that may lead to it making a formal proposal to set such thresholds for marketplaces.