The Ontario Securities Commission has stayed further proceedings by the Investment Industry Regulatory Organization of Canada against Deutsche Bank Securities Ltd. for its role in the non-bank asset-backed commercial paper (ABCP) market collapse.

The IIROC proceedings are stayed “until a decision of the commission has been released”, the OSC said. The proceedings against Deutsche Bank had been set to resume in April

Last October, an IIROC panel dismissed a motion for a stay in the proceedings. The proceedings involve allegations that the investment dealer failed disclose certain information to its clients who had invested in non-bank ABCP, and that it failed to ensure proper oversight of third-party ABCP, prior to that market freezing up in the summer of 2007.

The allegations against Deutsche Bank have not been proven.

The firm sought a stay of the IIROC proceedings, arguing that there are witnesses that could support to its defence, but as they aren’t members of the self-regulatory organization, or employees of a member, IIROC has no power to compel their testimony.

IE