CSA Mandatory Post Trade Transparency

August 1, 2018

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CSA Mandatory Post Trade Transparency

Letter Summary:

The notice creates a new information processor or “IP” to help increase post-trade transparency in the government bond market.  Previously, only corporate debt securities were required to report post-trade details to the IP.  The expansion of the scope of the IP, if approved, would be implemented in two phases commencing on April 1, 2019 and December 31, 2019.  


Overview of the Council’s Comments:

The council is very supportive of the of the Proposed Amendments because they aim to achieve uniform post-trade transparency in government and corporate debt securities. The amendments will lead to greater pricing transparency which will enable market participants to make improved pricing decisions while narrowing the bid-offer spreads. More specifically, the council believes, the Proposed Amendments should focus on the quality of the data by requiring all relevant parties who trade in these securities to report ‘order’ and ‘trade’ information. Moreover, the council agrees that the Proposed Amendments should extend to banks, including Schedule III banks.  Lastly, the council commented that while the volume caps and publication delays are reasonable, they should be harmonized with the TRACE system in the U.S. over the longer term.