CSA

Toronto - The Canadian Securities Administrators (CSA) today published for comment proposed National Instrument 23-103 Electronic Trading and Direct Electronic Access to Marketplaces. The proposed rule is designed to establish a regulatory framework for electronic trading in Canada.

Under the proposal, marketplace participants will be obligated to establish, maintain and ensure compliance with appropriate controls, policies and procedures, in order to manage the risks associated with various methods of electronic trading, including direct electronic access (DEA), the use of algorithms and high frequency trading. Additionally, the proposed rule enhances the current requirements imposed on marketplaces to ensure they take an active role in managing the risks to fair and orderly trading posed by electronic trading.

"Technological innovations in the Canadian marketplace underscore the importance of ensuring the risks associated with electronic trading are effectively managed and supervised," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "The framework proposed today is an important step in managing these risks and maintaining investor confidence in our markets."

The proposed rule was developed following consultations with marketplaces, marketplace participants and service vendors. It is consistent with international developments in electronic trading, including the International Organization of Securities Commissions'(IOSCO) 2010 report Principles for Direct Electronic Access to Markets. The CSA acknowledge the assistance of staff of the Investment Industry Regulatory Organization of Canada (IIROC) in the development of the proposal.

Investors and market participants are encouraged to submit comments on the proposed rule by July 8, 2011. For more information visit the websites of the CSA members.

The CSA, the council of the securities regulators of Canada's provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

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For more information:

CSA member name

Point of contact

Phone number

Alberta Securities Commission

Lorinda Brinton

403-297-2665

Autorité des marchés financiers

Sylvain Théberge

514-940-2176

British Columbia Securities Commission

Ken Gracey

604-899-6577

Financial Services Regulation Div. Newfoundland and Labrador

Doug Connolly

709-729-2594

Manitoba Securities Commission

Ainsley Cunningham

204-945-4733

New Brunswick Securities Commission

Wendy Connors-Beckett

506-643-7745

Northwest Territories Securities Office

Donn MacDougall

867-920-8984

Nova Scotia Securities Commission

Natalie MacLellan

902-424-8586

Nunavut Securities Office

Louis Arki

867-975-6587

Ontario Securities Commission

Carolyn Shaw-Rimmington

416-593-2361

PEI Securities Office, Office of the Attorney General

Janice Callbeck

902-368-6288

Saskatchewan Financial Services Commission

Barbara Shourounis

306-787-5842

Yukon Securities Registry

Graham Lang

867-667-5466