OSC has published The Canadian Fixed Income Market Report and OSC Staff Notice 21-708 – OSC Staff Report on the Canadian Fixed Income Market and Next Steps to Enhance Regulation and Transparency of Fixed Income Markets. Together, these materials summarize the OSC’s study of the fixed-income markets and set out the steps the OSC will take to enhance the transparency and regulation of fixed-income markets.
The Report is based primarily on publicly-available data and presents a fact-based snapshot of the fixed-income market in Canada. It’s the first phase of the OSC’s review of the fixed-income market and delivers on a commitment in the OSC’s Statement of Priorities to better understand this market.
According to the Report, there were approximately $2 trillion in outstanding fixed-income securities as of December 2014. The market is dominated by large issuers and institutions, with limited direct participation from individual investors. The adoption of electronic trading and alternative trading systems has been limited in this space.
“With this report, we have compiled research that confirms our focus on enhanced post-trade transparency and regulation of the fixed income markets in Canada,” said Howard Wetston, Q.C., chair and CEO of the OSC. “Our priority now is to develop regulation that will promote more informed decision-making for market participants regardless of size, improve market integrity and ensure that the market is fair and equitable to all investors.”
In the coming year, the OSC will take additional steps to enhance regulation in the fixed-income market as set out in OSC Staff Notice 21-708 and to identify opportunities where changes to regulatory approaches could improve transparency and better protect investors.