New guidance from the Bourse de Montréal Inc. (MX) sets out its flexible approach to complying with certain regulatory requirements as firms shift to remote working.
The exchange’s regulatory division said it’s not providing exemptions from specific requirements but will tolerate temporary departures from existing compliance standards due to the Covid-19 emergency.
“In its efforts in promoting market integrity, the division is not suspending its regulatory functions, which include the monitoring and supervision of the Bourse’s derivatives trading activities,” it said.
In its guidance, the division sets out its minimum expectations for documenting phone conversations that aren’t being recorded, and supervisory expectations for firms to ensure that these written records are captured and maintained.
It also included guidance for alternative approaches to time-stamping.
The division said alternative compliance measures will be deemed reasonable until June 30.
The deadlines for reporting futures trades and filing certain reports aren’t being altered, but the MX said it understands that strict compliance with these reporting requirements may be difficult.
For firms facing difficulties in complying with these requirements, it recommended contacting the regulatory division to discuss acceptable alternatives.
“The division will consider each situation independently, on a case-by-case basis, taking into consideration the operations and structure of each [firm] and the current limitations as a result of invoking its business continuity plan due to Covid-19,” it said.
The MX also said that it’s continuing its compliance examination activities, but these reviews are being conducted remotely.