(April 20 – 16:45 ET) – The TSE and CDNX are proposing a set of trading rules to apply to all Canadian markets, including any alternative trading system that wishes to operate in Canada. The TSE’s regulation division would become an SRO to administer them.

The TSE and CDNX have developed the rules in response to the Canadian Securities Administrator’ ATS Proposal. That initiative resulted in the formulation of “Universal Market Integrity Rules” designed to promote a fair and orderly market and to apply on a general basis to securities listed on the TSE and CDNX or traded on another marketplace, including an ATS.

The TSE and CDNX propose that the UMIR be adopted as an alternative to the CSA rules. They say they believe that any trading rules designed to ensure integrity and a fair and orderly market should apply to trading in all marketplaces, equally to all dealers who are accessing a marketplace, and not be capable of being circumvented by directing trading activity to another marketplace.

The TSE says it is considering a proposal that would result in its regulatory division being transferred to a separate subsidiary (RS Inc.). The Investment Dealers Association would, at the outset, hold 40% of the shares and be entitled to nominate 40% of the directors. Initially, RS Inc. would provide regulation services to the TSE and CDNX and ultimately it would apply to be recognized as an SRO.

Comments on the proposed UMIR are requested within 30 days.
-IE Staff