CANADA: IIROC Issues Guidance on Trading Supervision Obligations

Friday September 29 2017

Canadian Regulator Investment Industry Regulatory Organization of Canada (IIROC) has released Guidance on Amendments to its Trading Supervision Obligations.

The Amendments will do four key things:

• remove the “Minimum Compliance Procedures for Trading Supervision” table (Minimum Supervision Table) in Policy Part 3 of UMIR 7.1
• add new policies and requirements to address gaps created by the removal of the Minimum Supervision Table
• remove the requirement to tailor order parameters of every automated order system used by a Participant or client to not exceed marketplace thresholds in Policy Part 8 of UMIR 7.1
• add a new provision to UMIR 7.13 (3) (c) that would require client orders entered by an investment dealer or foreign dealer equivalent through a routing arrangement to be subject to reasonable risk management and supervisory controls, as well as policies and procedures established and maintained by the investment dealer or foreign dealer equivalent.

The Guidance document is comprehensive and can be read alongside the Amendments in order to give context to the Amendments the Guidance document itself will repeal and replace the previous Guidance document which clarifies certain requirements under UMIR 7.1 and Policy 7.1.

The New Guidance document and the Amendments regarding Trading Supervision Obligations both become  effective on 27^th March  2018.