OSC approves amendments to IIROC rules to increase market oversight

April 18, 2019 | Last updated on April 18, 2019
1 min read

Securities regulators have finalized rule changes that will enhance market oversight by expanding the use of client identifiers in trading data.

Regulatory notices published on Friday set out the Ontario Securities Commission’s (OSC) approval of proposed amendments to the Investment Industry Regulatory Organization of Canada (IIROC) rules that will introduce new client identifier requirements. The changes are to be phased in over two years, starting later this year.

IIROC initially proposed rule changes in 2017 that would expand the use of client identifiers to “improve the risk management, surveillance and investigatory capabilities of regulators.”

The proposals, which were revised last year, will require identifiers to be included with each order for a listed security that’s sent to a marketplace, and each reportable trade in a debt security.

Implementation of the changes will start Oct. 18 with requirements for debt securities. Phase two is slated for Oct. 19, 2020, requiring identifiers for certain clients trading listed securities. The final phase is set for April 19, 2021.

IIROC will be forming an implementation committee, comprising up to 15 members representing dealers, vendors, marketplaces and the buy side.