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The Investment Industry Association of Canada (IIAC) is calling on regulators to consider reforms to improve the process of valuing lightly traded securities.

“For these thinly traded securities, the prices reported at the end of day may be ‘stale’ or not always reflect current value. Investors, and other market participants, may be adversely impacted as a result,” the industry trade group said in a new paper.

While both the TSX Group Inc. and the NEO Exchange Inc. have taken steps to improve the accuracy of closing ETF prices and quotations, gaps remain, IIAC argued.

“Without a willingness from regulators to acknowledge these market-led solutions in their regulatory frameworks, many of the current issues plaguing end-of-day prices for thinly traded securities will persist,” it said.

IIAC recommended that the Canadian Securities Administrators and the self-regulatory organizations “undertake a harmonized, comprehensive review of rules, national instruments, policies, and guidance to determine where else changes are sensible.”

The IIAC is seeking feedback on its paper by Nov. 30.