Marketplaces, SROs & Clearing Agencies
Quotation and Trade Reporting System (QTRSs)
A Quotation and Trade Reporting System (QTRS) is a marketplace that may bring together orders of buyers and sellers and provide a trading facility. Currently there are no QTRSs recognized in Ontario. A QTRS is defined as a person or company that operates a facility that permits the dissemination of price quotations for the purchase and sale of securities, as well as reports of completed transactions.
Recognition ProcessTo become recognized as a QTRS, an applicant must first file an application and Form 21-101F1 to National Instrument 21-101 Marketplace Operation (NI 21-101) with the OSC, setting out its:
- corporate governance;
- by-laws, rules, policies and other similar instruments;
- systems and operations;
- access requirements;
- listings criteria;
- financial viability; and
Ongoing RequirementsIf recognized by the OSC, a QTRS must conduct itself in accordance with requirements outlined in NI 21-101, National Instrument 23-101 Trading Rules (NI 23-101) and any terms and conditions of recognition or exemption from recognition. Additional guidance regarding the requirements in NI 21-101 and NI 23-101 may be found in their related Companion Policies.
Some of these requirements include:
- setting rules;
- monitoring the conduct of its users and enforcing its requirements either directly or indirectly through a regulation services provider;
- conducting an annual independent system review;
- providing accurate and timely information to an Information Processor (Information Processor Link) or to an information vendor regarding orders and trades for the securities displayed on the QTRS; and
- filing any changes to the information provided in Form 21-101F1.
The OSC would be responsible for overseeing the compliance by a QTRS with any regulatory requirements. As part of its oversight, the OSC would review required filings (e.g., changes to information filed in Form 21-101F1), proposals for amendments to by-laws, rules and policies of the QTRS, and would perform on-site oversight reviews.
For more information: