The Bourse de Montréal Inc. (MX) is proposing to drop its enforcement mechanism that allows it to impose modest monetary fines for relatively minor violations of the exchange’s rules, replacing it with a more transparent remediation process.
In a notice detailing the proposals, the exchange reported that its self-regulatory oversight committee has approved proposed rule changes that would introduce the new enforcement remediation process, and scrap the little-used process of issuing fines for minor violations.
The minor violation program was adopted in 2017 as an alternative to a full enforcement proceedings for relatively minor rule breaches. However, in practice, it has not often been used.
According to the MX notice, this is because the list of eligible violations is relatively limited and the maximum fine is relatively low.
Now, it’s proposing to eliminate that process and to replace it with a new mechanism that would be used in cases where the target of proceeding agrees to cooperate, and to negotiate settlements that aim “toward implementing rigorous corrective measures.”
The new process would not be limited to use for certain offences, and wouldn’t have a maximum fine.
“The goal is to offer an extrajudicial enforcement method that promotes efficient use of the parties’ resources,” the notice said.
Additionally, the proposed new approach would be more transparent.
Unlike the minor violation program that only publishes information about these cases on an anonymous basis, the new process would disclose the participants involved in a settlement, the violations covered by the deal and the agreed sanctions.
“This change is intended to ensure the essential deterrent effect of the enforcement of the rules,” the exchange noted.
The regulatory division of the MX “believes that the proposed remediation process will provide a more suitable and more flexible extrajudicial measure, enabling it to fully achieve the goals of efficiency and timeliness in the enforcement function that have been pursued since 2017,” the notice said.
Along with the new remediation process, the MX has also proposed changes to clarify certain other rule provisions, and update the requirements that apply to submitting a settlement agreement for approval — including measures to simplify the approval of settlements that don’t require a hearing, and to create a new process for reviewing disciplinary decisions.
The proposed changes are out for comment until Jan. 26, 2026.