IIROC seeks second round of comments on client identifiers

IIROC announced on Thursday a second public consultation on ways to expand the use of client identifiers.

The proposed amendments would require client identifiers on each order sent to a marketplace and on each trade in debt securities reported to IIROC, said the self-regulatory organization in a release.

IIROC wants to expand the use of client identifiers “to maintain market integrity, protect investors and mitigate risks in electronic trading, while minimizing its impact on investment firms,” said the release.

Institutional clients would need a legal entity identifier (LEI) while an account number would be needed for retail clients.

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The SRO says there may be “significant impacts” from making changes to accommodate the LEIs.

“We are committed to working with the industry to understand the impacts and costs of the revised proposal in order to determine the best approach to implementing the rules,” said Victoria Pinnington, senior vice-president, Market Regulation at IIROC, in the release.

IIROC says it will continue to consult with its working group composed of members, vendors, marketplaces and the CSA during this second consultation. The working group was formed last year after the first proposal to amend client identifiers.

Other jurisdictions including the U.S. and Europe use similar initiatives for client identifiers, “in order to enhance marketplace transparency, and to improve risk management, surveillance and investigative capabilities,” the release said.

Comments can be submitted to Theodora Lam, tlam@iiroc.ca, by Sept. 26.

Read the request for comments here.

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