IIROC watching for market manipulation

IIROC is on the lookout for deceptive trading practices, its CEO told the Canadian Equity Market conference today in Toronto.

Susan Wolburgh Jenah says the May 6, 2010 flash crash served as a wake-up call.

“It was an important catalyst to a number of reforms IIROC initiated to mitigate the potential impacts of extreme volatility on marketplace reliability and stability,” she said in her remarks.

Such reforms include single-stock circuit breakers, investor education, and public consultation on more harmonized price and volume triggers at the marketplace level as an additional measure to control short-term, unexplained price volatility.

Read: IIROC has its eye on active trading

IIROC will soon issue proposed guidance that will help to clarify how and when new forms of trading behaviour may offend long-standing prohibitions against market manipulation and deceptive trading.

Read Jenah’s full remarks here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.