News Releases

Canadian securities regulators outline next steps in the implementation of enhancements for regulation of the fixed income market

Apr 21, 2016

Today the Canadian Securities Administrators (CSA) published CSA Staff Notice 21-317 Next Steps in Implementation of a Plan to Enhance Regulation of the Fixed Income Market, which provides an update on various elements of the CSA’s fixed income regulation plan.

“Enhancement of fixed income regulation is expected to improve market integrity, facilitate more informed decision-making among market participants and evaluate access to the fixed income market. Increasing transparency in the corporate debt market is a key element of this plan, and the CSA is working with the Investment Industry Regulatory Organization of Canada (IIROC) to achieve this goal,” said Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers.

IIROC has started the process to become the information processor for corporate debt securities in Canada. Information that will be made available by IIROC, as the information processor, is outlined in Appendix B of CSA Staff Notice 21-317.

In the coming months, the CSA intends to communicate the specific timelines for the implementation of the transparency framework.

Over the longer term, CSA and IIROC will review fixed income trading activity, as well as the appropriateness of the initial dissemination delay (two days after a trade is executed, or T+2) and the volume caps to determine whether they continue to be appropriate or need to be changed. Any changes in these areas will be subject to public consultation.

A review of dealers’ practices regarding new issue allocations is also a part of the fixed income regulation plan. Its objectives are to determine what, if any, regulatory action is needed in this area, in light of concerns raised by some market participants about their ability to participate in new debt offerings. Staff also intend to seek input from buy-side participants on their experience participating in new issues of fixed income securities.

In September 2015, the CSA published for comment CSA Staff Notice 21-315 Next Steps in Regulation and Transparency of the Fixed Income Market, which set out the CSA’s proposed plan to enhance fixed income regulation. The CSA received 14 written submissions, which were taken into consideration in finalizing the fixed income regulation plan.

CSA Staff Notice 21-317 can be found on CSA members’ websites.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

- 30 -

For more information:

Kristen Rose
Ontario Securities Commission

Alison Walker
British Columbia Securities Commission

Jason Booth
The Manitoba Securities Commission

Tanya Wiltshire
Nova Scotia Securities Commission

Carl Allwood
Office of the Superintendent of Securities
Newfoundland and Labrador

Jeff Mason
Nunavut Securities Office

Shannon McMillan
Financial and Consumer Affairs Authority of Saskatchewan

Sylvain Théberge
Autorité des marchés financiers

Andrew Nicholson
Financial and Consumer Services Commission, New Brunswick

Janice Callbeck
The Office of the Superintendent of Securities, P.E.I.

Rhonda Horte
Office of the Yukon Superintendent of Securities

Tom Hall
Office of the Superintendent of Securities,
Northwest Territories