Securities regulators conduct supervisory review of Investment Industry Regulatory Organization of Canada


With respect to debt market surveillance, CSA staff reviewed the processes for developing, reviewing and updating debt market surveillance alerts; data integrity assurance processes and procedures to ensure the accuracy and consistency of data on reported debt transactions; and the Debt Market Surveillance Policies and Procedures Manual.

CSA Staff, who were satisfied that IIROC had sufficient processes and procedures in place in the areas identified, made a low priority finding with respect to certain IIROC processes and procedures that were not integrated into equity and debt market surveillance policies and procedures manuals. .

IIROC has recognized this, has amended the manuals to reflect this finding, and changed its procedures to include the requirement to hold regular alert review meetings to discuss relevant trends and patterns and to address issues. potential changes to existing alerts and the development of new alerts, as well as the requirement to keep minutes of such meetings.

CSA staff noted that IIROC has made recent improvements to the market-wide circuit breaker process and assesses the need for additional changes, such as automating the process. The CSA have stated that they will continue to monitor IIROC’s progress and follow up on possible improvements to the market-wide circuit breaker process.

The report explained that the key processes and procedures relating to the regulatory functions of oversight of the equity and debt markets should be properly documented in order to promote the effectiveness of these functions and to ensure staff training, succession planning. and business continuity. Without such documentation, the decisions of surveillance staff could be misaligned, according to the report.


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