Market Regulation Services Inc. (RS) announced that as of April 1, 2002, all trading of equity securities in Canada will be subject to new trading rules, called the Universal Market Integrity Rules.
The new rules will apply to trading of securities listed on the Toronto Stock Exchange Inc. and Canadian Venture Exchange. In addition, the universal rules will apply to future marketplaces, including Alternative Trading Systems that retain RS as a regulation services provider.
“Universal rules are a necessity in allowing competition in the trading of equity securities in Canada,” said Tom Atkinson, president & CEO of RS. “Rules that are applied and enforced consistently in competitive marketplaces are a practical, workable solution to ensure that trading is carried out in a fair and orderly manner. Marketplaces should compete, but market regulation should not become a commodity to be traded between marketplaces.”
Universal Market Integrity Rules were developed over the past two years following extensive industry consultation as part of the Canadian Securities Administrators’ initiative to create a framework for competitive operation of traditional exchanges and ATSs. RS is responsible for administering UMIR and any changes requested by RS are subject to the approval of applicable securities regulatory authorities in Canada.
UMIR will replace the CSA Trading Rules. The new rules will:
- Apply to equities trading in all marketplaces;
- Apply equally to all dealers who are accessing a marketplace;
- Not be capable of being circumvented by directing trading activity to another marketplace; and
- Incorporate, to the greatest extent possible, any exceptions to the rules that are required to accommodate the workings of an individual exchange or quotation and trade reporting system.
Full-text versions of UMIR are available on RS’s web site at www.regulationservices.com.