Provision of Staff Support: Market Regulation Policy
Specific Responsibilities: The Committee reviews and makes recommendations to staff, the President and the Board of Directors ("Board") of IIROC regarding each proposed amendment to the Universal Market Integrity Rules ("UMIR") prior to the submission of the proposed amendment to the Board to ensure that the proposal not only adequately addresses market integrity concerns but is also practicable and cost-efficient from the perspective of marketplaces and persons trading on the marketplaces.
At the request of the President, the Committee may review and make a recommendations to the President and/or the Board respecting:
- any application for an exemption of a marketplace or a class of transaction from the application of a provision of UMIR;
- the position to be taken by IIROC in response to a request for comments issued by a securities regulatory authority or self-regulatory organization that would impact trading on marketplaces and persons with access to trading on a marketplace;
- any other matter that, in the opinion of the President or the Board, the review or comment of the Committee would be desirable.
The Committee, on its own initiative, may make recommendations to staff, the President or to the Board on any matter within the mandate of the Committee that, in the opinion of the Committee, would improve the integrity of the Canadian capital markets.
Membership & Structure
Membership: A floating number of members, including:
- Marketplace Representatives – A representative of the TSX and a representative of each other marketplace that has retained IIROC to be a regulation services provider;
- Trading Representatives - Representatives of Participants (with particular emphasis on persons with trading supervisory responsibility or experience, at least one of whom shall have a background in the trading of derivatives). The number of Trading Representatives may be equal to the number of Marketplace Representatives;
- Institutional/Subscriber Representatives - Representatives of institutional investors, including clients with "direct market access" or subscribers to an alternative trading system;
- Legal/Compliance Representatives - Representatives with experience or expertise in securities trading compliance matters (including: members of the legal community with experience in advising dealers on regulatory compliance, professional advisers in securities regulatory compliance of accounting firms, persons employed by a dealer with senior compliance responsibilities and former employees of securities regulatory authorities or self-regulatory organizations); and
- Independent Representatives - At least one independent person who, while not a director, officer or employee of a Member has experience or expertise that, in the opinion of the President and CEO or his/her designate, would benefit the Committee.
- President (or another officer of IIROC designated by the President);
- Chair of the Board (or another member of the Board designated by the Chair or the Board); and
- A representative of the interests of "retail investors".
Term: 2-year term
Nominating Process: The members of the Committee shall be nominated:
- Marketplace Representatives - Each marketplace that has retained IIROC to be a regulation services provider is entitled to nominate a member of the Committee;
- Trading Representatives - by Dealer Members;
- Institutional/Subscriber Representatives, Legal/Compliance Representatives Independent Representatives and Retail Investor Representative - by Dealer Members, Marketplace Members, or by the President and CEO or his/her designate.
Appointment: Process All nominees are reviewed by the President and CEO or his/her designate and, if accepted, appointed to the Committee.
Meeting Schedule: Regular bi-monthly meetings and special meetings at the call of the Chair.
Executive and Subcommittees
Chair and Vice-Chair: A Chair and Vice-Chair are elected by the members of the Committee for the 2-year term of the Committee.
Executive Committee: No Executive Committee
Sub-Committees: No Standing Sub-Committees. Ad Hoc Sub-Committees formed at the request of the President or the initiative of the Committee.