The Investment Industry Regulatory Organization of Canada (IIROC) is launching a second consultation on proposals that aim to enhance trading oversight and investor protection by requiring orders to include client identifiers.
IIROC issued a set of proposals on Thursday that would require each order sent to a marketplace, and trades in debt securities, to carry a client identifier. Under the proposals, institutional clients would utilize a legal entity identifier (LEI) while retail clients would use an account number.
The self-regulatory organization notes that the proposals may have “significant impacts” on the investment industry; so, it’s seeking feedback on implementation costs and timelines, along with possible alternatives.
“The proposed client identifiers would allow IIROC to better protect investors from potential market abuses,” said Victoria Pinnington, senior vice president, market regulation, at IIROC, in a statement. “We are committed to working with the industry to understand the impacts and costs of the revised proposal in order to determine the best approach to implementing the rules.”
IIROC reports that its proposals are similar to initiatives that have already been implemented in other jurisdictions in an effort to improve market surveillance and oversight. The SRO first issued proposals to introduce client identifiers in May 2017 and, has formed a working group involving dealers, trading venues and other regulators to consult on the proposals.
Comments on this latest set of proposals are due by Sept. 26.