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Imposing rules on lightning-fast electronic trading is crucial to managing risks to the market and to individual market players, the Canadian Securities Adminstrators, an umbrella organization of the country’s provincial securities regulators, said Friday.

As previously reported by the Financial Post, Canada’s regulators are taking the first steps toward creating a framework to control the new breed of high-speed trading that has grown to about 25% of market volume in the few years since its arrival.

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Rules proposed Friday are designed “to ensure that marketplace participants… are managing the risks associated with electronic trading, including direct electronic access, which is important to maintain investor confidence in our markets,” said Susan Greenglass, director of market regulation at the Ontario Securities Commission.Regulators are seeking specific input on proposals to handle the subset of electronic trading that offers direct access to exchanges and alternative trading platforms. Among the planned rules are provisions that would make dealers responsible for managing any risks associated with providing their dealer number to a third party, as well as impose minimum standards on client financial resources and identification of trades.