Rule Brings Greater Transparency

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    A new rule has been established to bring greater regulatory transparency to a growing and significant asset class. The Investment Industry Regulatory Organization of Canada (IIROC) published the ‘Debt Transaction Reporting Rule’ to take effect in November 2015. Under the new framework, dealer members will be required to report to IIROC, on a post-trade basis, debt security transactions they execute and those of their affiliates that are Government Securities Distributors. The framework has been approved by the Canadian Securities Administrators. By November 2015, it is expected that more than 90 per cent of dealer member debt trading activity will be subject to IIROC regulatory oversight. Participation in the debt market by institutional and retail investors has increased significantly in recent years, with the value of bond trading in Canada in 2013 estimated to be $11.9 trillion, compared with $1.95 trillion in equity markets. “We recognize that fixed income plays an important role in helping investors achieve their financial goals. We have taken this significant step to enhance our timely and effective regulatory oversight of trading in this asset class,” says Susan Wolburgh Jenah, IIROC president and CEO.