Industry


REQUEST FOR COMMENT

INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC)

AMENDMENTS TO DEALER MEMBER RULES AND FORM 1 RELATING TO
THE FUTURES MARKET SEGREGATION AND PORTABILITY CUSTOMER-PROTECTION REGIME

IIROC is publishing for public comment amendments to its Dealer Member Rules (DMR) and Form 1 relating to futures markets’ segregation and portability customer-protection regimes (the Proposed Amendments). The Proposed Amendments are intended to facilitate the adoption of a gross customer margin (GCM) segregation and portability regime by central clearing counterparties (CCPs) that serve the domestic futures markets. The primary objective of the Proposed Amendments is to codify DMR requirements that restrict linkages between a Dealer Member’s futures business and its other business lines that are not subject to the futures markets’ GCM segregation and portability regimes.

A copy of the IIROC Notice and Request for Comment (IIROC Notice), which includes the text of the Proposed Amendments, was also published on our website at http://www.osc.gov.on.ca. Among other things, the IIROC Notice provides background to the futures markets’ GCM segregation and portability regimes and the policy rationale for the Proposed Amendments. It also describes possible subsequent DMR amendments for future rule-making phases in response to ongoing development and implementation of GCM segregation and portability regimes by the CCPs serving the domestic futures markets and related policy issues. The IIROC comment period ends on August 16, 2017.

For additional context, please also see CSA Staff Notice 24-315 Update on Enhanced Segregation and Portability Initiatives for Clearing Agencies Serving the Domestic Futures Markets dated February 9, 2017 available on our website at https://www.osc.gov.on.ca/en/SecuritiesLaw_csa_20170209_24-315_enhanced-segregation.htm.