The Toronto Stock Exchange is reminding its brokerage firm members that they must have trading supervision policies in place by the end of September.

In the wake of the RT Capital high closing scandal last year, the TSE implemented its Supervision of Trading Policy on March 28, 2001. The policy clarifies the obligations of brokerage firms, and requires them to supervise the trading in exchange-listed securities to ensure that trading is carried out in compliance with exchange requirements.

The policy requires that brokers have policies and procedures in place both to supervise and monitor their trading. The TSE gave brokers six months to implement the supervisory and compliance programs to meet the requirements of the policy. That means brokers must have the procedures in place by September 28.