Securities Law

BCN 2003/44 - Amendments to National Instrument 21-101 Marketplace Operation and Companion Policy 21-101CP and to National Instrument 23-101 Trading Rules and Companion Policy 23-101CP [BCN - Rescinded]

Published Date: 2003-11-07
Effective Date: 2003-11-07

Background
The Canadian Securities Administrators (the CSA or we) plan to adopt amendments (the Amendments) to National Instrument 21-101 Marketplace Operation and National Instrument 23-101 Trading Rules (including related forms) and related Companion Policies 21-101CP and 23-101CP. The full text of the Amendments is reproduced on the Ontario Securities Commission website at www.osc.gov.on.ca.

If the required government approval is obtained in British Columbia, the Commission intends to implement the Amendments effective December 31, 2003. It may not be possible for all jurisdictions to meet the December 31, 2003 effective date. For example, in Ontario, because of legislative requirements, the anticipated effective date is January 14, 2004.

The Commission published the Amendments for comment on July 11, 2003 (see BCN 2003/26). The CSA thanks all the commenters. A list of the commenters and a summary of comments and responses are attached as an Appendix to the OSC's Notice of adoption and are available on the OSC website. As a result of these comments, the CSA has decided to make non-material changes to some of the proposed amendments. The changes are outlined below.

Changes Made to the Amendments

  • We will amend proposed subsections 7.1(1) and 7.2 of NI 21-101 by deleting “with which the marketplace has executed a contract under NI 23-101”. We anticipated that some exchanges and quotation and trade reporting systems would maintain their regulatory functions and not contract with a regulation services provider.
  • We will repeal all of Part 9 of NI 21-101. Without the market integration requirement, this Part is not needed.
  • We will amend section 10.1 to clarify that marketplaces have to make their schedules of transaction fees publicly available.
  • We will amend subsection 2.1(1) of the Companion Policy 21-101CP to clarify that the Canadian securities regulatory authorities consider a dealer that internalizes its orders of exchange-traded securities to be a marketplace, unless that dealer executes and prints on an exchange or quotation and trade reporting service in accordance with the requirements of the exchange or quotation and trade and reporting service.
  • We will amend section 9.1 of the Companion Policy 21-101CP to clarify that if a marketplace enters into a contract with a regulation services provider under NI 23-101, that marketplace must provide information to an information vendor meeting standards set by that regulation services provider. These standards will apply to reporting and regulatory feeds and include core data elements and service levels. If a marketplace performs its own regulation, then it will set its own standards.
  • We will repeal sections 11.2 and 11.3 of the Companion Policy 21-101CP.

Questions
Questions may be referred to any of:

Veronica Armstrong
Senior Policy Advisor, Legal and Market Initiatives
British Columbia Securities Commission
Phone: (604) 899-6738
E-mail: varmstrong@bcsc.bc.ca

Karen Wiwchar
Senior Legal Counsel
Alberta Securities Commission
Phone: (403) 297-4732
E-mail: Karen.Wiwchar@seccom.ab.ca

Randee Pavalow
Director, Capital Markets
Ontario Securities Commission
Phone: (416) 593-8257
E-mail: rpavalow@osc.gov.on.ca

Tracey Stern
Senior Legal Counsel, Market Regulation
Ontario Securities Commission
Phone: (416) 593-8167
E-mail: tstern@osc.gov.on.ca

Ann Leduc
Chef du service de la réglementation
Commission des valeurs mobilières du Québec
Phone:(514) 940-2199 ext. 4572
E-mail: ann.Leduc@cvmq.com

Serge Boisvert
Conseiller en réglementation
Commission des valeurs mobilières du Québec
Phone: (514) 940-2199 ext. 4576
E-mail: serge.boisvert@cvmq.com

November 7, 2003

 


Douglas M. Hyndman
Chair

Ref: NI 21-101
21-101F1
21-101F2
21-101F3
21-101F4
21-101F5
21-101F6
21-101CP
NI 23-101
23-101CP
BCN 2003/26

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.