23-307 - Order Protection Rule - Implementation Milestones [CSA Staff Notice - Rescinded]
| Published Date: | 2010-02-19 |
|---|---|
| Effective Date: | 2010-02-19 |
| Rescinded Date: | 2012-06-21 |
| Document(s): |
The Order Protection Rule (OPR), contained in National Instrument 23-101 Trading Rules, was published in January 2010 in its final form1 and will come into force on February 1, 2011. OPR requires marketplaces to have policies and procedures that are reasonably designed to prevent trade-throughs. To implement this requirement, we anticipate that marketplaces will have to perform some technology development and changes. In addition, OPR imposes these policy and procedures obligations on marketplace participants that choose to use directed-action orders (DAOs).
In order to facilitate OPR implementation, CSA staff (we) have worked with the Trade-through Implementation Committee2, to develop milestones, with dates, for marketplaces to meet from February 2010 to February 2011.
A. Milestones and relevant dates
The milestones described below outline steps that industry participants identified as necessary to implement OPR by February 1, 2011. We have also added a milestone for marketplace participants that intend to use DAOs.
To inform the CSA regarding the marketplaces’ readiness to meet OPR’s February 1, 2011 effective date, we ask that marketplaces, on each milestone date, provide us with information about their progress. However, if a marketplace does not expect to complete an activity by its milestone date, then we ask that the marketplace notify us as soon as possible. We encourage marketplaces to consider whether they should publicly disclose information related to their progress of OPR implementation.
Since marketplace participants’ assumption of OPR obligations, through use of the DAO is optional, we are not asking them to provide information about their progress to us. Also, we are not asking vendors to send us information about their progress. However, we ask that all marketplaces, marketplace participants and vendors participate in an industry-wide test that will test the proper functioning of systems in an OPR environment.
A notice providing details about the industry-wide test will be issued in the coming months.
1(2010) 33 OSCB 787; other CSA jurisdictions published the OPR electronically.2The Trade-through Implementation Committee is an open-membership committee comprised of representatives of dealers, marketplaces, and vendors.
| Action | Details | Completion Date | |
| Marketplaces - Identification of OPR solutions | Marketplaces will have identified OPR implementation issues and solutions, including those relating to the DAO marker (collectively, OPR solutions) | February 28, 2010 | |
| Marketplaces - Design and publication of OPR solutions | Marketplaces will have:
| April 1, 2010 | |
| Marketplaces - Internal building and testing of OPR solutions (April - August) | Marketplaces will have:
| August 3, 2010 | |
| Marketplaces - External testing of OPR solutions (August - November) | Marketplaces will have completed testing of their OPR solutions with the systems of parties, including vendors, to whom orders are directed for handling or execution | November 30, 2010 | |
| Vendors and Marketplace Participants - Development and testing of OPR solutions (April - November) | Vendors and marketplace participants developing proprietary systems will have:
| November 30, 201 | |
Blackout - December 2010 | |||
Industry-Wide Testing - January 2011 | |||
OPR Implementation - February 1, 2011 | |||
Questions may be referred to any of:
| Tracey Stern Ontario Securities Commission (416) 593-8167 | Sonali GuptaBhaya Ontario Securities Commission (416) 593-2331 |
| Serge Boisvert Autorité des marchés financiers (514) 395-0337 ext.4358 | Elaine Lanouette Autorité des marchés financiers (514) 395-0337 ext.4356 |
| Lorenz Berner Alberta Securities Commission (403) 355-3889 | Meg Tassie British Columbia Securities Commission (604) 899-6819 |
February 19, 2010