Capital markets can only function successfully with the trust and confidence of investors and industry participants. Confidence can be undermined by manipulative trading practices and breaches of marketplace trading rules and IIROC's system for monitoring the markets is our front-line defence for detecting these abusive practices and promoting fair and orderly trading activity.
As part of Recognition Orders with the Canadian Securities Administrators (CSA), IIROC monitors trading in securities on and across all Canadian stock exchanges and Alternative Trading Systems (ATSs) to ensure compliance with Universal Market Integrity Rules (UMIR). IIROC also regulates all ATSs as Dealer Members and Marketplace Members. All exchanges must become Marketplace Members but their operations are regulated by the provincial securities regulators.
In some cases, stock exchanges and ATSs retain IIROC to monitor additional trading rules for their specific marketplaces. For instance, IIROC monitors Market-Specific Rules for the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSX-V) relating to issuer disclosure requirements, opening and post-open trading, and requirements for direct market access, take-over bids and issuer bids.
To ensure our surveillance capabilities are coordinated with other jurisdictions, IIROC is a member of the Intermarket Surveillance Group (ISG). The ISG is comprised of 31 exchanges around the world including all major stock exchanges. Its mandate is to promote effective, cooperative market surveillance among international exchanges. more
IIROC's Role: IIROC works to strengthen confidence in the fairness and integrity of Canadian markets by focusing on the following areas:
|How We Review & Analyze Trading
||Trading Halts & Timely Disclosure|
|Surveillance staff monitor trading on and across all stock exchanges and Alternative Trading Systems (ATSs) to ensure compliance with the Universal Market Integrity Rules (UMIR).
|Trading Review analysts review post-trade data for possible violations of trading rules and may conduct preliminary investigations. They are also responsible for special projects and reviews related to trading.
|Under timely disclosure rules, staff review corporate news releases and may require firms to issue statements to help explain unusual movement in their shares. Staff issue trading halts and resumptions where needed to allow the broad dissemination of material news to marketplace participants.|