Through these standards, supervisors of trading operations will regularly report to their boards on potential compliance risks. They will also bring significant compliance risks to the attention of their boards immediately so they can respond in an appropriate and timely manner.
To further assist securities dealers in developing and implementing effective trading supervision and compliance procedures, TSE RS has also developed a series of manuals to assist securities dealers in setting up their supervision systems.
According to Mr. Atkinson, "dealers must develop and implement supervision and compliance procedures that exceed the elements identified in this Policy where the circumstances warrant."
These circumstances can change given the differences among firms in terms of their size, the lines of business in which they are engaged, experience and training of its employees.
"Any effective supervision standards depend on a strong overall commitment on the part of securities dealers, through its board of directors, to develop and implement a clearly defined set of policies and procedures that are reasonably designed to prevent and detect violations of TSE RS Requirements."
Regulation is an evolving process. TSE RS will continue to work with the industry to raise and clarify supervision policies as the need arises.
These new standards will be published for 30-day comment period in the Ontario Securities Commission Bulletin this Friday.
TSE Regulation Services
Following the demutualization of the TSE, the market regulation function is now separate from its for-profit business operations. This new division is named TSE Regulation Services or "TSE RS".
TSE Regulation Services provides the TSE marketplace with effective self-regulation of market conduct in a responsive and neutral manner.
