The Investment Industry Regulatory Organization of Canada has published proposed amendments and guidance that aim to ensure consistent regulatory oversight of Order Execution Service accounts.
These accounts are considered a form of third-party electronic access to marketplaces by the regulator.
Read: IIROC studies impact of electronic trading
The proposed amendments would require that dealer members offering OES accounts must first make sure clients have trading activity that exceeds established thresholds. Members would then have to provide infromation to IIROC.
Further, they’d be required to address (through policies and procedures) the risks associated with OES accounts that have limited direct order handling by staff.
The proposed amendments are designed to ensure that all electronic trading, regardless of channel, has the same level of supervision and oversight.
Stakeholders have 90 days to provide comments.
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