Proposed Amendments to National Instrument 21-101 Marketplace Operation (“NI 21-101”)and National Instrument 23-101 Trading Rules(the “Proposed Amendments”)
While we support the platform legislation approach of the Consultation Draft in order to promote regulatory flexibility to create and amend rules quickly, in the era of burden reduction we would appreciate additional information with respect to the need for an entirely new statute in lieu of substantively equivalent targeted amendments amending the existing Securties Act and consolidating the Commodity Futures Act. Given that a new Act in form of the Consultation Draft was the chosen course of action, publishing of the cost-benefit analysis prepared in connection with this decision would also likely be of interest for stakeholder review. Given the Consultation Draft, and given the length of time one would anticipate the resulting final Act to be force, we believe there may be room for additional forward-thinking policy innovation (particularly given that ‘facilitating innovation’ is one of the stated principles of the Consultation Draft) and additional legislative provisions with regard to topical issues in securities regulation such as sustainability and diversity. We believe consideration should be given to enshrining
Overview of the Council’s Comments:
Given the confidential nature of the information, as a potential alternative to permitting the release of data by marketplaces (which may have their own commercial interests in connection with the release of the data), the CSA could instead work with IIROC in connection with any request for information by third party capital markets researchers. IIROC would appear to be the appropriate moderator of access to the capital markets data set in question, as the input sit currently receives with respect to its internal research function is not dissimilar to the inputs that would be received with respect to any external research that might occur. Whoever releases the data must ensure the information is safeguarded. One of IIROC’s functions in this respect could potentially include determining whether full visibility on data points should be provided to a third party if it is not required for the scope of the research project.