The Montreal Stock Exchange (MX) is proposing to do away with most of its capital rules, which are largely obsolete; and to update its circuit breaker rules in the wake of changes by other regulators.

The derivatives exchange Monday published a couple of rule proposals for comment. First, it is proposing to eliminate most of its rules that deal with margin and capital requirements, on the basis that they are superfluous, since the exchange doesn’t oversee financial compliance.

In fact, the notice explains, the MX gave up the task of enforcing financial compliance back in 2005, and those responsibilities were transferred to the Investment Industry Regulatory Organization of Canada (IIROC). At the time, it says, the exchange neverthless maintained its capital and margin rules under an agreement with IIROC, so that the rules in this area couldn’t be changed without its approval.

Now, it has decided to do away with those rules; except for any areas that aren’t covered by IIROC’s rules (regarding certain specific products) for the sake of simplicity, efficiency, and harmonization with other markets. The MX notes that it will also still have influence over IIROC’s rules in this area, and that it can still make its own margin and capital rules where necessary. The proposal is out for comment until Feb. 17.

Separately, the MX is also proposing changes to its rules regarding circuit breakers. The notice spelling out the proposals indicates that the changes are necessary in light of new rules regarding market-wide circuit breakers in the U.S., and new guidance in this area from IIROC.

As a result of these recent changes, the MX is proposing to amend its own circuit breaker rules in certain areas, and repeal provisions that it says have become unnecessary. That proposal is out for comment until February 20.