Staff of the Ontario Securities Commission have published a notice outlining the OSC’s approach to regulate foreign-based stock exchanges seeking to access Ontario’s capital markets.

The commission says it prepared the in response to a number of recent inquiries made by foreign-based exchanges.

“Before Ontario investors are given the opportunity to invest directly through a stock exchange that is outside our jurisdiction, we are setting out the appropriate regulatory framework that will provide protection to those investors,” said OSC Chair David Brown, in a statement.

Foreign-based stock exchanges may apply for recognition or for an exemption from recognition. The OSC says the approach to be taken in exempting a foreign-based exchange is similar to the one used for recognition, but seeks to avoid applying duplicative and inefficient requirements on exchanges that are already subject to sufficient regulatory scrutiny in their home jurisdiction.

“These proposals continue to build on our framework that allows for a vital, competitive capital market in Ontario that fosters lower trading prices and improved execution of trades,” added Brown.