IIROC to Oversee 90% of Debt Transactions by 2015

par Andrew Rickard | November 04 2014 07:02AM

The Investment Industry Regulatory Organization of Canada (IIROC) has published a new rule governing the reporting of debt transactions which it says will bring more transparency to what it describes as "a growing and significant asset class". IIROC points out that the value of bond trading in Canada came to about $11.9 trillion in 2013, compared to $1.95 trillion in equity markets.

Under the new rule, dealers will be required to report all debt security transactions they execute to IIROC, as well as any transaction conducted by their affiliates that are Government Securities Distributors. The reports will be made on a post-trade basis. By November of 2015 IIROC expects to have regulatory oversight over 90% of the debt trading activity carried out by its dealer members.

“We recognize that fixed income plays an important role in helping investors achieve their financial goals. We have taken this significant step to enhance our timely and effective regulatory oversight of trading in this asset class,” says IIROC president and CEO Susan Wolburgh Jenah.