Potential violations of trading rules come to IIROC’s attention from our surveillance practices, compliance reviews of firms’ trading activities, or other sources such as public complaints or referrals from other regulators.
Suspected violations of trading rules are escalated to IIROC’s Trading Review and Analysis (TR&A) department for additional analysis. The TR&A department has two main functions:
- Conduct preliminary investigations if there is reason to believe that improper trading is occurring or has occurred.
- Conduct post-trade reviews of data to monitor for trading that violates trading rules, including market manipulation.
IIROC’s Surveillance platform has rigorous analytical features that assist staff in identifying rule violations and which recreate complex trading conditions.
When TR&A staff find evidence of a rule violation the case is referred to IIROC’s Enforcement department or other regulatory agencies, primarily the provincial securities regulators, for further investigation and possible disciplinary action. Where staff find evidence of potential insider trading, the matter is referred to the provincial securities regulator.