CANADA: Implementation of Enhancements for Regulations of Fixed Income Markets

Friday April 22 2016

On 21^st April 2016, the Canadian Securities Administrators (CSA) published CSA Staff Notice 21-317 Next Steps in Implementation of a Plan to Enhance Regulation of the Fixed Income Market, which provides an update on various elements of the CSA’s fixed income regulation plan. 

The objectives of the CSA’s fixed income regulation plan are to improve market integrity, facilitate more informed decision-making among market participants and evaluate access to the fixed income market. 

The Investment Industry Regulatory Organization of Canada (IIROC) has started the process to become the information processor for corporate debt securities in Canada. In the coming months, the CSA intends to communicate the specific timelines for the implementation of the transparency framework. 

Over the longer term, CSA and IIROC will review fixed income trading activity, as well as the appropriateness of the initial dissemination delay (two days after a trade is executed, or T+2) and the volume caps to determine whether they continue to be appropriate or need to be changed. Any changes in these areas will be subject to public consultation.   

A review of dealers’ practices regarding new issue allocations is also a part of the fixed income regulation plan. Its objectives are to determine what, if any, regulatory action is needed in this area, in light of concerns raised by some market participants about their ability to participate in new debt offerings. 

Click on the link above for further details.