What we did
Continued to implement measures to mitigate market volatility.
How we did it
Expanded the single-stock circuit breaker (SSCB) program in February 2015 to encompass more securities, extend the times when SSCBs are active, and allow more than one SSCB to trigger for a particular security during the same trading day. A list of all securities that are part of the SSCB program is maintained on the IIROC website.

Re-published proposed guidance in March 2015 to establish a framework for marketplaces to adopt price thresholds in order to mitigate short-term, unexplained price movements in the trading of individual securities. The new framework aligns Canada’s regulations with rapidly evolving trading technologies and practices and ensures there are proper controls in place for all trading activity regardless of source. The revised guidance reflects comments received on our April 2014 proposal.
Why it matters
Together with other complementary measures these initiatives enhance market integrity and foster investor confidence by helping to maintain fair and orderly markets.

Risk controls, price thresholds and circuit breakers help to reduce the number of erroneous trades and unexplained price movements, and lessen the need for regulatory intervention by IIROC.

Continued to focus on ensuring consistent standards for regulatory oversight of all electronic trading.
Published final rule amendments and guidance in November 2014 to address Order Execution Services (OES) as a distinct form of electronic trading offered by some IIROC-regulated firms.

Under the new requirements, firms that offer OES must apply a unique identifier for each OES client that exceeds a set trading activity threshold and for accounts of certain other clients. The amendments and guidance took effect on June 1, 2015.
By focusing on electronic trading by IIROC-regulated firms that offer OES accounts, we are ensuring regulatory oversight of OES that is consistent with other methods of access.

Continued to move toward enhanced oversight of trading in debt markets.
Finalized a debt transaction reporting rule for more timely surveillance and enhanced regulatory oversight of Canadian debt market activity, to be implemented in two stages beginning in November 2015.

The rule was developed after extensive consultation with stakeholders, including the Bank of Canada.

Published for comment a proposal for a cost-recovery fee model for debt market oversight in December 2014, following consultation with a working group representing a cross-section of IIROC-regulated firms.
The debt market represents an asset class held by many Canadians and is less transparent than equity markets. An effective surveillance framework enables better monitoring and enforcement, strengthens the fairness and integrity of the debt market, and builds investor confidence and protection.

Fostered discussion on the emerging risk of Canadian dealers routing retail orders to U.S. wholesalers.
Published guidance in December 2014 to reaffirm the existing IIROC requirement that orders sent to a market outside of Canada be executed on a Foreign Organized Regulated Market (FORM). FORMs, as defined in Universal Market Integrity Rules (UMIR), have substantially the same regulatory monitoring and dissemination of data to the public as would be present if the trade were conducted on a marketplace in Canada.

Republished for comment, in January 2015, a proposed “anti-avoidance” provision that would permit the execution of small client orders on a non-Canadian market only when the order is entered on a FORM that displays order information, or if the order receives meaningful price improvement (a “better price” as defined in UMIR). The proposed amendments are designed to support healthy price discovery on Canadian markets.
Re-publishing the proposal fosters constructive discussion about the best approach to maintaining healthy and competitive Canadian markets.

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