RS is jointly owned by the TSE and the IDA but is required to operate independently and at arms length from both.
Background
When the Toronto Stock Exchange demutualized in 2000, it separated its regulatory functions from its for-profit stock exchange business to ensure customers that its regulatory services would be provided without conflict of interest and in a fair and unbiased manner.
This led to the formation of Market Regulation Services Inc. (RS). Owned jointly by the Toronto Stock Exchange (TSE) and the IDA, RS oversees the regulation of market participants and has regulatory jurisdiction over the trading activities of all participants that buy or sell securities over Exchanges, Quotation and Trade Reporting Systems (QTRS) and Alternative Trading Systems (ATS) that choose to retain RS's regulatory services. RS was recently recognized by the country's securities commissions (those commissions that regulate marketplaces) to act in a national market regulation capacity.
The initial 11-member Board of Directors includes two representatives each from the TSE and IDA, a member jointly appointed by the TSE and IDA to represent the junior markets and five independent members, including one specifically advising the Board on ATS trends and concerns. The President and CEO of RS is also a Director.
RS has offices in Toronto and Vancouver and its operations include: Investigations and Enforcement, Market Surveillance, and Regulatory and Market Policy. Together, these departments investigate irregularities and complaints and ensure trading compliance with market integrity rules and securities laws.
TSE President and CEO Barbara Stymiest is a member of the RS Board of Directors. Other RS Board of Directors are: Bill Moriarty, Managing Director, Co-Head, Capital Markets Services, RBC Dominion Securities Inc., will serve as Chair of the Board, J. Charles Caty, retired Investment Executive, will serve as Vice-Chair of the Board, Tom Atkinson, President & CEO, RS, Paul Bates, President & CEO, Charles Schwab Canada, Luc Bertrand, President & CEO, Bourse de Montreal, Ian Brown, Senior Managing Director, Raymond James Ltd., Eric Kirzner, Professor of Finance, Joseph L. Rotman School of Management, University of Toronto, Mark Madoff, Director of Listed Trading, Bernard L. Madoff Investment Securities LLC, Joseph Oliver, President & CEO, IDA and Kathryn Perry, Director, Equities, Investment Management Division, Alberta Revenue.
The TSE group of companies includes The Toronto Stock Exchange Inc., Canadian Venture Exchange Inc., and TSE CDNX Markets Inc., which collectively manage all aspects of Canada's senior and junior capital markets. The TSE is headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary and Vancouver.
