CSA enhancing investor access to debt-trading data

Regulators are taking another step on the long, slow road to transparent Canadian debt markets with new reporting requirements that will expand reporting of corporate debt trades and introduce mandatory reporting of government debt trading.

The Canadian Securities Administrators (CSA) have finalized rule changes that are intended to improve market transparency by ensuring that data on trading in both corporate and government debt securities will be accessible to investors through the Investment Industry Regulatory Organization of Canada (IIROC).

IIROC, which is currently designated as the information processor for corporate debt, will be expanding its role to include government debt.

In its notice, the CSA said that the revisions aim to “require all persons or companies that execute trades in government and corporate debt securities to report [these] trades” to IIROC.

The new requirements were developed by the CSA, along with IIROC, the Bank of Canada and the federal Department of Finance.

The CSA indicated that the implementation of more robust reporting will take place in two phases.

First, starting Aug. 31, IIROC will start distributing post-trade information for government debt transactions executed by dealers and banks that are already reporting debt trading to IIROC, along with trades reported by marketplaces and inter-dealer bond brokers.

The second phase will begin on May 31, 2021, when IIROC will start disseminating information for trades in corporate and government debt by banks that currently don’t report transactions to IIROC.

“These requirements will ensure that information about trades in debt securities can be accessed by retail and institutional investors,” said Louis Morisset, chair of the CSA and president and CEO of the Autorité des marchés financiers (AMF).

“We believe that providing free, comprehensive information on debt securities trading gives all market participants enhanced transparency and access to information that will improve their investment decisions and contribute to their confidence in Canada’s capital markets,” said Andrew Kriegler, president and CEO of IIROC, in a statement.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.