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2023-06-15

Decision No. 2023-PDG-0030: Coordinated General Decision 24-930 Regarding Exemption from Certain Obligations Under Regulation 24-101 on Institutional Trade Matching and Settlement

The Autorité des marchés financiers issued Decision No. 2023-PDG-0030 to extend the exemption from anomaly reporting obligations for registered firms under Regulation 24-101. This measure ensures continuity of the three-year moratorium originally established in 2020, covering the period from July 2, 2023, until the permanent removal of the requirement takes effect. The exemption terminates on the earlier of the implementation date of the proposed regulatory amendments or 18 months after the decision's effective date.

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DECISION NO. 2023-PDG-0030 Coordinated General Decision 24-930 Regarding Exemption from Certain Obligations Under Regulation 24-101 on Institutional Trade Matching and Settlement

Definitions

  1. The expressions used in this decision are defined in the Securities Act, RLRQ, c. V-1.1 (the "Act") and Regulation 24-101 on Institutional Trade Matching and Settlement, RLRQ, c. V-1.1, r. 8 (the "Regulation 24-101").

Context 2. On July 1, 2020, the Ontario Securities Commission (the "OSC") amended Regulation 24-101 (the "2020 Amendment") to provide for a three-year moratorium on the applicability of its section 4.1 (the "anomaly reporting obligation"). Pursuant to the 2020 Amendment, registered dealers and advisers (the "registered firms") were no longer required to submit the report set out in Appendix 24-101A1 to the OSC from July 1, 2020, to July 1, 2023 (the "2020 Moratorium").

  1. The securities regulators of British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Nunavut, the Northwest Territories, and Yukon implemented the 2020 Moratorium through coordinated general decisions consistent with the 2020 Amendment, as did the Autorité des marchés financiers (the "Authority") through Decision No. 2020-PDG-0026.

  2. On December 15, 2022, the Canadian Securities Administrators (the "CSA") published for comment a proposed amendment to Regulation 24-101 (the "Proposed Amendment to Regulation 24-101") along with their notice of proposed amendment to Regulation 24-101 on Institutional Trade Matching and Settlement and the amendment to the General Instruction to Regulation 24-101 on Institutional Trade Matching and Settlement. If adopted, the Proposed Amendment to Regulation 24-101 will, among other things, permanently remove the anomaly reporting obligation. The Proposed Amendment to Regulation 24-101 is expected to come into force on May 27, 2024, coinciding with the date for the transition to a one-day settlement cycle in Canada.

  3. In order for registered firms to continue benefiting from the moratorium during the period between July 2, 2023, and the effective date of the Proposed Amendment to Regulation 24-101, the Authority intends to grant registered firms the exemption set out below.

Decision 6. Pursuant to section 263 of the Act and considering that this does not prejudice the protection of investors, the Authority exempts any registered firm from the anomaly reporting obligation set out in section 4.1 of Regulation 24-101.

Effective Date 7. This decision takes effect on July 2, 2023, and ceases to have effect on the earlier of the following dates: a) the effective date of the Proposed Amendment to Regulation 24-101; b) the date falling 18 months after the effective date of this decision.

Done on June 8, 2023.

Louis Morisset Chief Executive Officer

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