Securities Law & Instruments

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NOTICE OF MINISTERIAL APPROVAL OF
AMENDMENTS TO NATIONAL INSTRUMENT 21-101 MARKETPLACE OPERATION AND COMPANION POLICY 21-101 CP
AND TO NATIONAL INSTRUMENT 23-101 TRADING RULES AND COMPANION POLICY 23-101CP



On May 16, 2012, the Minister of Finance approved amendments (the Amendments) to the following instruments: 

  • National Instrument 21-101 Marketplace Operation (NI 21-101) and Companion Policy 21-101CP;
  • National Instrument 23-101 Trading Rules (NI 23-101) and Companion Policy 23-101CP;
  • Form 21-101F1 Information Statement Exchange or Quotation and Trade Reporting System;
  • Form 21-101F2 Initial Operation Report Alternative Trading System;
  • Form 21-101F3 Quarterly Report of Marketplace Activities (Form 21-101F3); and
  • Form 21-101F5 Initial Operation Report for Information Processor.

The Amendments were published in the Ontario Securities Commission Bulletin on March 23, 2012 at (2012) 35 OSCB (Supp-1). 

The key objectives of the Amendments are to: 

  • update and streamline the regulatory and reporting requirements and to align, where applicable, the requirements applicable to all marketplaces;
  • establish the circumstances under which orders are exempt from the pre-trade transparency requirements in NI 21-101;
  • increase transparency of marketplace operations;
  • update other requirements applicable to marketplaces to address certain issues or situations, such as conflicts of interest, outsourcing arrangements, or business continuity plans;
  • give guidance in a number of areas, including what would be considered a marketplace or when indications of interest would be considered to be firm orders;
  • extend the current exemption from transparency requirements applicable to government debt securities until December 31, 2014;
  • extend the obligation in NI 23-101 to not intentionally lock or cross markets to marketplaces in certain circumstances; and
  • revise and update the requirements applicable to information processors.

The Amendments will come into force on July 1, 2012, with the exception of the amendments to Form 21-101F3, which come into force on December 31, 2012.

The Amendments are published in Chapter 5 of this Bulletin and at www.osc.gov.on.ca. No changes have been made to the rule since publication in the Bulletin on March 23, 2012.

 

June 14, 2012