CSA Multilateral Notice and Request for Comment Proposed Multilateral Instrument 91-101 Derivative Product Determination and Proposed Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting (the “Proposed Amendments”)

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CSA Multilateral Notice and Request for Comment Proposed Multilateral Instrument 91-101 Derivative Product Determination and Proposed Multilateral Instrument 96-101 Trade Repositories and Derivatives Data Reporting (the “Proposed Amendments”)

Letter Summary:

With respect to the specific question about U.S. dollar-denominated accounts, we do not believe they are distinct from other client accounts such that they should be permitted to trade in the U.S. without reference to the CBBO. If the Proposed Amendments apply, they should apply system-wide, in order to avoid the possibility that market participants would structure their accounts to avoid the rule (for example, by opening up a separate account to manage currency exposure).

Overview of the Council’s Comments:

We support the purposes of the Proposed Amendments to promote public price discovery by adding liquidity in the displayed markets, as well as consistency in the requirement to obtain a “better price” under Canada’s dark liquidity framework. We are of the view that there may be broader implications (both positive and negative) that require consideration with respect to small client orders that are prohibited from being executed in a foreign jurisdiction at an inferior price to that which would be required if executed in Canada