A new requirement to report certain failed trades will take effect on April 15, the Investment Industry Regulatory Organization of Canada (IIROC) announced Monday.
Back on June 1, 2011, the requirement to report an extended failed trade (which occurs when a trade fails to settle and remains unresolved for 10 days) was adopted for trades in listed securities executed on a marketplace that was to settle through the continuous net settlement (CNS) facilities of CDS Clearing and Depository Services Inc. Now, IIROC is implementing the same requirement for trades that settle outside the CNS facilities.
CSA, IIROC seek input on trade transparency
The obligations to file these reports are being introduced to help IIROC gather information to evaluate whether trading activity that resulted in a failed trade has been conducted in compliance with the trading rules and other regulatory requirements.
The requirement to report trades which settle outside of the CNS facility of CDS was delayed to allow IIROC to complete the necessary programming so that it can automatically process information received directly from CDS relating to these trades.