CSA Multilateral Notice 24-317 Notice of Relief from Certain Filing Provisions under Regulation 24-101 respecting Institutional Trade Matching and Settlement

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CSA Multilateral Notice 24-317
Notice of Relief from Certain Filing Provisions under Regulation 24-101 respecting Institutional Trade Matching and Settlement March 26, 2020 Introduction The securities regulatory authorities of British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Nunavut, the Northwest Territories, and Yukon (the participating jurisdictions or we) announce that we will grant relief to registered dealers or advisers (registered firms) through a three-year moratorium from the application of section 4.1 of Regulation 24-101 respecting Institutional Trade Matching and Settlement (Regulation 24-101). As set out in Notice of Amendment: National Instrument 24-101 Institutional Trade Matching and Settlement, the Ontario Securities Commission is seeking ministerial approval for amendments to Regulation 24-101 that would provide harmonized relief (amendments) beginning on July 1, 2020 and ending on July 1, 2023. We will coordinate our moratorium beginning date and moratorium end date with the amendments. Substance and Purpose The relief provides a three-year moratorium on the applicability of section 4.1 of Regulation 24-101 (exception reporting requirement). Registered firms will not be required to deliver Form 24-101F1 Registered Firm Exception Report of DAP/RAP Trade Reporting and Matching (Form 24-101F1) to the participating jurisdictions beginning on July 1, 2020 and ending on July 1, 2023. Following the successful shortening of the settlement cycle by a day in 2017, the on-going relevance of the requirement to deliver Form 24-101F1 came into question. The three-year moratorium will allow for the assessment of the need for filing of Form 24-101F1. The local orders in the participating jurisdictions are

• BC Instrument 24-501 Exemption from the filing requirements of National Instrument
  24-101 Institutional Trade Matching and Settlement
• Alberta Securities Commission Blanket Order 24-505 Relief from Exception Reporting
  Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Financial and Consumer Affairs Authority of Saskatchewan General Order 24-501 In the
  Matter of Relief from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Manitoba Securities Commission Blanket Order No. 7503 – Relief from Certain
  Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement

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• Autorité des marchés financiers Décision générale relative à la dispense de certaines
  obligations prévues au Règlement 24-101 sur l’appariement et le règlement des opérations institutionnelles
• Nova Scotia Securities Commission Blanket Order No. 24-503 In the Matter of Relief
  from Certain Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Financial and Consumer Services Commission of New Brunswick Blanket Order 24-502
  In the Matter of Exemption from Certain Reporting Requirements in National Instrument 24-101 Institutional Trade Matching and Settlement
• Prince Edward Island Blanket Order 24-501 – Relief from Certain Reporting
  Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Newfoundland and Labrador Blanket Order No. 106 In the Matter of Relief from Certain
  Reporting Requirements under National Instrument 24-101 Institutional Trade Matching and Settlement
• Nunavut Blanket Order 24-501 Exemption from Certain Reporting Requirements of
  National Instrument 24-101 Institutional Trade Matching and Settlement
• Northwest Territories Blanket Order 24-501 Exemption from Certain Reporting
  Requirements of National Instrument 24-101 Institutional Trade Matching and Settlement
• Yukon Superintendent Order 2020/01 Exemption from Certain Reporting Requirements
  of National Instrument 24-101 Institutional Trade Matching and Settlement In British Columbia, the three-year moratorium will be implemented by varying the existing relief set out in BC Instrument 24-501 Exemption from the filing requirements of National Instrument 24-101 Institutional Trade Matching and Settlement. Background Regulation 24-101 has been in effect since 2007. It provides a framework for ensuring efficient and timely settlement processing of institutional trades (equity and debt) by registered firms. Regulation 24-101 has a number of requirements including that registered firms are required to establish, maintain and enforce policies and procedures designed to achieve a matching threshold for institutional trades. Under the exception reporting requirement, registered firms are required to deliver Form 24-101F1 to the participating jurisdictions if less than 90% of trades executed by or for the registered firm during the quarter matched within the time required by Regulation 24-101. Form 24-101F1 requires registered firms, among other things, to explain why they did not meet the matching threshold and the steps to address the delay. Continued Obligation Under Regulation 24-101 The relief provides a three-year moratorium on the applicability of the exception reporting requirement. The relief from Regulation 24-101 does not relieve registered firms from complying with other requirements in Regulation 24-101, for example establishing, maintaining and enforcing policies and procedures to achieve the matching threshold for institutional trades.

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Questions
Please refer your questions to any of the following:
Autorité des marchés financiers
Anna Tyniec
Senior Policy Advisor, Clearing Houses
514 395-0337, ext. 4345 anna.tyniec@lautorite.qc.ca British Columbia Securities Commission Meg Tassie Senior Advisor 604 899-6819 MTassie@bcsc.bc.ca Alberta Securities Commission Bonnie Kuhn Senior Legal Counsel 403 355-3890 Bonnie.Kuhn@asc.ca Financial and Consumer Affairs Authority of Saskatchewan Liz Kutarna Deputy Director, Capital Markets Securities Division 306 787-5871 liz.kutarna@gov.sk.ca Manitoba Securities Commission Paula White Deputy Director, Compliance and Oversight 204 945-5195 Paula.White@gov.mb.ca Nova Scotia Securities Commission H. Jane Anderson Executive Director and Secretary to the Commission 902 424-0179 Jane.Anderson@novascotia.ca Financial and Consumer Services Commission (New Brunswick) Wendy Morgan Deputy Director, Securities 506 658-3060 Wendy.Morgan@fcnb.ca

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Government of Prince Edward Island, Superintendent of Securities Steven Dowling Acting Director 902 368-4551 sddowling@gov.pe.ca Office of the Superintendent of Securities, Service Newfoundland and Labrador Renée Dyer, Superintendent of Securities 709 729-4909 ReneeDyer@gov.nl.ca Department of Justice, Government of Nunavut Jeff Mason, Superintendent of Securities 867 975-6591 jmason@gov.nu.ca Office of the Superintendent of Securities, Northwest Territories Tom Hall Superintendent of Securities 867 767-9305 securitiesregistry@gov.nt.ca Office of the Yukon Superintendent of Securities Rhonda Horte Securities Officer, Deputy Superintendent of Securities 867 667-5466 Rhonda.Horte@gov.yk.ca