IIROC proposes amendments and guidance for Order Execution Service accounts as a form of third-party electronic access

TORONTO, Oct. 15, 2013 /CNW/ - The Investment Industry Regulatory Organization of Canada (IIROC) published today for comment proposed amendments and guidance to ensure consistent regulatory oversight of Order Execution Service (OES) accounts as a form of third-party electronic access to marketplaces.

The proposed amendments would require dealer members who offer OES to identify clients with trading activity that exceeds established thresholds and to provide this identification to IIROC.  These dealer members would be required to address, through policies and procedures, the risks associated with OES accounts that have limited direct order handling by staff.

The proposed amendments are designed to ensure that all electronic trading, regardless of channel, has the same level of supervision and oversight.

Stakeholders have 90 days to provide comments.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.  Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.  IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News