CSA Multilateral Notice 24-317 Notice of Relief from Certain Filing Provisions under National Instrument 24-101 Institutional Trade Matching and Settlement |
March 26, 2020
Introduction
The securities regulatory authorities of British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Nunavut, the Northwest Territories, and Yukon (the participating jurisdictions or we) announce that we will grant relief to registered dealers or advisers (registered firms) through a three-year moratorium from the application of section 4.1 of National Instrument 24-101 Institutional Trade Matching and Settlement (NI 24-101).
As set out in Notice of Amendment: National Instrument 24-101 Institutional Trade Matching and Settlement, the Ontario Securities Commission is seeking ministerial approval for amendments to NI 24-101 that would provide harmonized relief (amendments) beginning on July 1, 2020 and ending on July 1, 2023. We will coordinate our moratorium beginning date and moratorium end date with the amendments.
Substance and Purpose
The relief provides a three-year moratorium on the applicability of section 4.1 Exception reporting requirement of NI 24-101 (exception reporting requirement). Registered firms will not be required to deliver Form 24-101F1 Registered Firm Exception Report of DAP/RAP Trade Reporting and Matching (Form 24-101F1) to the participating jurisdictions beginning on
July 1, 2020 and ending on July 1, 2023.
Following the successful shortening of the settlement cycle by a day in 2017, the on-going relevance of the requirement to deliver Form 24-101F1 came into question. The three-year moratorium will allow for the assessment of the need for filing of Form 24-101F1.
The local orders in the participating jurisdictions are
• BC Instrument 24-501 Exemption from the filing requirements of National Instrument 24-101 Institutional Trade Matching and Settlement
• Alberta Securities Commission Blanket Order 24-505 Relief from Exception Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Financial and Consumer Affairs Authority of Saskatchewan General Order 24-501 In the Matter of Relief from Certain Reporting Requirements under National Instrument
24-101 Institutional Trade Matching and Settlement
• Manitoba Securities Commission Blanket Order No. 7503 – Relief from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Autorité des marchés financiers Décision générale relative à la dispense de certaines obligations prévues au Règlement 24-101 sur l’appariement et le règlement des opérations institutionnelles
• Nova Scotia Securities Commission Blanket Order No. 24-503 In the Matter of Relief from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Financial and Consumer Services Commission of New Brunswick Blanket Order 24-502 In the Matter of Exemption from Certain Reporting Requirements in National Instrument 24-101 Institutional Trade Matching and Settlement
• Prince Edward Island Blanket Order 24-501 – Relief from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Newfoundland and Labrador Blanket Order No. 106 In the Matter of Relief from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Nunavut Blanket Order 24-501 Exemption from Certain Reporting Requirements of National Instrument 24-101 Institutional Trade Matching and Settlement
• Northwest Territories Blanket Order 24-501 Exemption from Certain Reporting Requirements of National Instrument 24-101 Institutional Trade Matching and Settlement
• Yukon Superintendent Order 2020/01 Exemption from Certain Reporting Requirements of National Instrument 24-101 Institutional Trade Matching and Settlement
In British Columbia, the three-year moratorium will be implemented by varying the existing relief set out in BC Instrument 24-501 Exemption from the filing requirements of National Instrument 24-101 Institutional Trade Matching and Settlement.
Background
NI 24-101 has been in effect since 2007. It provides a framework for ensuring efficient and timely settlement processing of institutional trades (equity and debt) by registered firms.
NI 24-101 has a number of requirements including that registered firms are required to establish, maintain and enforce policies and procedures designed to achieve a matching threshold for institutional trades.
Under the exception reporting requirement, registered firms are required to deliver
Form 24-101F1 to the participating jurisdictions if less than 90% of trades executed by or for the registered firm during the quarter matched within the time required by NI 24-101.
Form 24-101F1 requires registered firms, among other things, to explain why they did not meet the matching threshold and the steps to address the delay.
Continued Obligation Under NI 24-101
The relief provides a three-year moratorium on the applicability of the exception reporting requirement. The relief from NI 24-101 does not relieve registered firms from complying with other requirements in NI 24-101, for example establishing, maintaining and enforcing policies and procedures to achieve the matching threshold for institutional trades.
Questions
Please refer your questions to any of the following:
British Columbia Securities Commission
Meg Tassie
Senior Advisor
604-899-6819
Alberta Securities Commission
Bonnie Kuhn
Senior Legal Counsel
403-355-3890
Financial and Consumer Affairs Authority of Saskatchewan
Liz Kutarna
Deputy Director, Capital Markets
Securities Division
306-787-5871
Manitoba Securities Commission
Paula White
Deputy Director, Compliance and Oversight
204-945-5195
Autorité des marchés financiers
Anna Tyniec
Senior Policy Advisor, Clearing Houses
514-395-0337, ext. 4345
Email: anna.tyniec@lautorite.qc.ca
Nova Scotia Securities Commission
H. Jane Anderson
Executive Director and Secretary to the Commission
902-424-0179
Financial and Consumer Services Commission (New Brunswick)
Wendy Morgan
Deputy Director, Securities
506-658-3060
Government of Prince Edward Island, Superintendent of Securities
Steven Dowling
Acting Director
902-368-4551
Office of the Superintendent of Securities, Service Newfoundland and Labrador
Renée Dyer,
Superintendent of Securities
(709) 729-4909
Department of Justice, Government of Nunavut
Jeff Mason,
Superintendent of Securities
(867) 975-6591
Office of the Superintendent of Securities, Northwest Territories
Tom Hall
Superintendent of Securities
867-767-9305
Office of the Yukon Superintendent of Securities
Rhonda Horte
Securities Officer, Deputy Superintendent of Securities
867-667-5466