21-101CP - Marketplace Operation [CP Proposed - Lapsed]
| Published Date: | 2006-08-11 |
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| Document(s): |
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Concurrently Published:
Amendments to
Companion Policy 21-101 CP
PART 1 AMENDMENTS
1.1 Amendments
(1) This amends Companion Policy 21-101 CP.
(2) Section 3.4 is amended by:
a. adding a new subsection 3.4(6):
3.4(6) Any registration exemptions that may otherwise be applicable to a dealer under securities legislation are not available to an ATS, even though it is registered as a dealer (except as provided in the Instrument), because of the fact that it is also a marketplace and different considerations apply; and
b. renumbering the subsections accordingly.
(3) Section 9.1 is amended by:
a. adding a new subsection 9.1(2):
9.1(2) To comply with subsections 7.1 and 7.2 of the Instrument, any information provided by a marketplace to an information processor or information vendor must include identification of the marketplace and should contain all relevant information including details as to volume, symbol, price and time of the order or trade;
b. repealing subsection 9.1(5); and
c. renumbering the subsections accordingly.
(4) Part 10 is amended by
a. repealing subsection 10.1(1) and substituting the following:
10.1(1) The Canadian securities regulatory authorities expect that requiring marketplaces, inter-dealer bond brokers and dealers to provide order and/or trade information, as applicable, to an information processor or information vendor would lead to increased transparency. Allowing the information processor or, in the absence of an information processor, the regulation services provider for the fixed income markets, to designate the securities for which this information should be reported would help ensure that increased transparency is achieved while allowing flexibility in meeting transparency requirements. The Canadian securities regulatory authorities will continue to review the transparency requirements to determine whether the requirements summarized in subsections (2) and (3) below should be amended.
b. repealing subsection 10.1(2) and substituting the following:
10.1(2) The requirements of the information processor for government debt securities are as follows:
(a) Marketplaces displaying orders of government debt securities and inter-dealer bond brokers are required to provide in real time information for all orders displayed on the marketplace with respect to the government debt securities designated by the information processor, including the marketplace or inter-dealer bond broker displaying the quote, type of security, issuer, series, coupon and maturity of security, best bid and best ask price for all orders, the yield and total disclosed volume for such orders, and time of the order,
(b) Marketplaces trading government debt securities and inter-dealer bond brokers are required to provide, no later than one hour from the time of the trade, or such shorter period of time determined by the information processor, details of trades of government debt securities designated by the information processor, including details as to the type of counterparty, issuer, type of security, series, coupon and maturity of security, price, yield, time of the trade and the volume traded. If the total par value of a trade for a designated government debt security issued or guaranteed by the government of Canada is greater than $10 million, the trade details provided to the information processor are to be reported as "$10 million+". If the total par value of a trade of any other government debt security is greater than $2 million, the trade details provided to the information processor are to be reported as "$2 million+",
(c) A marketplace or an inter-dealer bond broker will satisfy the requirements in subsections 8.1(1), 8.1(3), 8.1(4) and 8.1(5) of the Instrument by providing accurate and timely information to an information vendor that meets the standards set by the regulation services provider for the fixed income markets;
c. repealing subsection 10.1(3) and substituting the following:
10.1(3) The requirements of the information processor for corporate debt securities are as follows:
(a) Marketplaces trading corporate debt securities, inter-dealer bond brokers and dealers trading corporate debt securities outside of a marketplace are required to provide details of trades of all corporate debt securities designated by the information processor, including details as to the type of counterparty, issuer, type of security, class, series, coupon and maturity, price and time of the trade and, subject to the caps set out below, the volume traded, no later than one hour from the time of the trade or such shorter period of time determined by the information processor. If the total par value of a trade of an investment grade corporate debt security is greater than $2 million, the trade details provided to the information processor are to be reported as "$2 million+". If the total par value of a trade of a non-investment grade corporate debt security is greater than $200,000, the trade details provided to the information processor are to be reported as "$200,000+".
(b) Although subsection 8.2(1) of the Instrument requires marketplaces to provide information regarding orders of corporate debt securities, the information processor has not required this information to be provided.
(c) A marketplace, an inter-dealer bond broker or a dealer will satisfy the requirements in subsections 8.2(1), 8.2(3), 8.2(4) and 8.2(5) of the Instrument by providing accurate and timely information to an information vendor that meets the standards set by the regulation services provider for the fixed income markets;
d. adding a new subsection 10.1(6):
10.1(6) The information processor is required to use transparent criteria and a transparent process to select the designated government debt securities and designated corporate debt securities. The information processor is also required to make the criteria and the process publicly available;
e. renumbering the remaining subsections accordingly.
f. renumbering section 10.2 as 10.3.