Market Regulation Services Inc.

Market Regulation Services Inc.

May 12, 2005 15:09 ET

RS Pursues Investor Protection During Consultation on Market Structure Rules

TORONTO, ONTARIO--(CCNMatthews - May 12, 2005) - RS announced today that it is pleased that the securities commissions in Alberta, BC, Manitoba, Ontario and Quebec are initiating a review of the 'trade-through' issue in Canada.

"We will work closely with the securities commissions on the monitoring for incidences of trade-through and will report this to the securities commissions," said Tom Atkinson, President & CEO of RS. "We are also looking forward to actively participating in the consultative process on market structure rules.

"However, we remain concerned that there is still a real risk to small investors that their orders will be traded through while the process to arrive at a lasting solution runs its course," Atkinson said. "The earliest that any proposed solution emerging from this review can be implemented would be mid-2006 or later. We believe that pre-emptive action to prevent harm from occurring in the first place is always in the best interests of investors and market integrity.

"Currently, small investors benefit from trade-through protection on Canadian equity marketplaces," Atkinson said. "The pending changes in market structure would remove this protection with no public debate or comment. This is why we feel an interim solution is necessary to preserve this protection until a long term solution can be implemented."

A "trade-through" occurs when a trader trades at a price that is "inferior" to a price that is available to that trader. For more detail on trade-through, see
RS Notice 2005-003.

Although the securities commissions did not approve the immediate implementation of interim trade-through protection prior to the completion of this review, RS is submitting its proposed amendments for public comment. This will provide the public with an opportunity to see RS's proposed interim solution and to provide comment in support of it.

"At RS, we agree with the securities commissions that innovation and efficiency are essential to a robust Canadian capital market," Atkinson said. "Nevertheless, RS takes the position that any potential harm to investors should be avoided if possible, especially when an interim solution is available."

About Market Regulation Services Inc. (RS)

RS is the independent regulation services provider for Canadian equity marketplaces, including TSX, TSX Venture Exchange, Canadian Trading and Quotation System, Bloomberg Tradebook Canada Company and Liquidnet Canada Inc. RS is recognized by the securities commissions of British Columbia, Alberta, Manitoba and Ontario and the "Autorite des marches financiers" in Quebec to regulate the trading of securities on these marketplaces by participant firms and their trading and sales staff. RS helps protect investors and ensure market integrity by ensuring all equities transactions are executed properly, fairly and in compliance with trading rules.

Contact Information

  • Market Regulation Services Inc. (RS)
    Doug Maybee
    Director of Communications & Public Affairs
    (416) 646-7253
    (416) 627-3900 (cell)