Market regulation

In Ontario, marketplaces, including exchanges and alternative trading systems (ATSs); self-regulatory organizations (SROs); clearing agencies; and investor protection funds are regulated by the Ontario Securities Commission (OSC). Part of the OSC’s mandate is to promote fair and efficient capital markets and contribute to the reduction of systemic risk, including promoting compliance with market-related requirements of Ontario securities law and helping to develop and refine relevant rules and policies.

The OSC regulates these entities through:

recognition or approval of marketplaces, SROs, clearing agencies, clearing houses, and investor protection funds operating in Ontario
regulatory and filing requirements
policy initiatives related to market structure and marketplace operation

Self-regulatory organizations

Self-regulatory organizations (SROs) regulate the operations and the standards of practice and business conduct of their respective members and their representatives for the protection of investors and the public interest.

Marketplaces

Marketplaces bring together buyers and sellers of securities whose orders interact in established, non-discretionary ways such that there is an agreement to trade. Marketplaces include exchanges and alternative trading systems (ATSs).

Clearing agencies and clearing houses

A clearing agency facilitates the clearing and settlement of trades. A clearing house is an entity through which trades in contracts made on a commodity futures exchange are cleared.

Investor protection funds

The OSC approves and oversees the operation of investor protection funds which may compensate investors for losses in the event of the bankruptcy of an investment dealer or a mutual fund dealer.

Market structure initiatives

As markets become increasingly complex with advances in trading technology, the OSC undertakes market structure initiatives and develops rules and policies to address any regulatory concerns that may arise.

Information processors

Information processors consolidate and disseminate order and trade information to provide investors and market participants with a single source of such information.

Trade repositories

Trade repositories collect and maintain records of derivatives transactions with the purpose of improving transparency in the derivatives market

Recognition/ designation/ exemption from recognition

When filing an application for recognition, designation, or exemption from recognition, the OSC aims to issue a first comment letter within 20 working days of receiving a complete and adequate application in acceptable form and complete our review within 6-9 months from receipt of a final application for routine items.